China, the world's largest exporter of clothing with a 28 percent share of the market, is predicted to be the main winner from the disappearance of the textile quotas, as its textile industry can reach economies of scale that allow it to undercut producers with higher costs in Europe and the US.
The end of the quotas, enshrined in the 1974 Multifibre Arrangement and later in the WTO Agreement on Textiles and Clothing, was expected to have a major impact not only on wealthier nations that import goods, but on other developing countries that may lose market share to China.
Under China's WTO accession accord, Washington may limit growth in Chinese imports to 7.5 percent through 2008 in cases where the imports cause disruption to US industry.
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