Developments in the Global Apparel Industry after the MFA Phaseout

Stitches to Riches?: Apparel Employment, Trade, and Economic Development in South Asia

“…As for the competitors, in Indonesia, Vietnam, and particularly Cambodia, there is a lack of skilled workers with experience in technology, marketing, and design as well as in middle management (Frederick and Staritz 2012). In Cambodia, the vast majority of top and middle managers, technical workers, and supervisors are foreigners (Natsuda, Goto, and Thoburn 2009).…”

Global competition, institutional context and regional production networks: up- and downgrading experiences in Romania’s apparel industry

“…In particular the MFA quota system impacted on trade and employment patterns in the apparel sector and its phase out has increased global competition and consolidation. This liberalization process is, however, uneven as tariffs still remain relatively high compared to other manufacturing sectors and hence preferential market access continues to strongly impact on the articulation of apparel GPNs (Staritz 2011;Frederick/Staritz 2012). Regional trade agreements have favored the emergence of regional production networks in Europe, North America and Asia and were part of a broader strategy to secure the competitiveness of the apparel and textile complex in the core countries of the Triad (Bair/Dussel Peters 2006).…”

“…Particularly the tightening labor market related to outward migration with around two million Romanians working abroad (Ciutacu 2006;Popescu/Popa 2013) and more appealing employment opportunities in sectors such as retailing impacted on apparel firms (ILO 2010;Interviews Firms 2008/09). Further, demands of lead firms, particularly retailers, increasingly include functions beyond CMT such as input sourcing and financing and involvement in design and product development 10 (Staritz 2011;Frederick/Staritz 2012). The global economic crisis accelerated these competitive pressures as demand in traditional end markets and the domestic market declined.…”

“…Romania was the largest CEE supplier in 2004 accounting for 4.3 % of EU-15 apparel imports ( Table 1). The boom in apparel exports from CEE and North Africa lost momentum in 2004/05 with the MFA phase-out, as orders shifted to China and other low-cost Asian apparel exporter countries (Gereffi/Frederick 2010;Staritz 2011;Frederick/Staritz 2012). However, these reductions have not been as dramatic as expected by those foretelling the elimination of regional suppliers (Conway 2006 There have been important shifts in apparel exports within CEE.…”

Global production networks and uneven development: Exploring geographies of devaluation, disinvestment, and exclusion

“…The industry's extensive, albeit regionalized, global network was in large part the result of a global quota system, together with preferential tariff arrangements, that offered slivers of rich country markets to global South producers in support of particular geopolitical goals. In the wake of quota removal, and the erosion of preferential tariff arrangements as MFN tariff rates declined, production network restructuring combined selective upgrading of key suppliers in regions proximate to core markets, together with widespread retrenchment and disinvestment, especially by foreign‐owned firms (Lopez‐Acevedo & Robertson, ; Heron, ; Frederick & Staritz, ; Frederick, Bair, & Gereffi, ). These patterns of regional disinvestment were evident at the macro‐scale.…”