Trade Barriers Still In Place

The textile and manufacturing industry may appear to be open to all since trade barriers were banned last January, however many barriers remain despite years of consultations and diplomatic pressure. According to WWD, in a recent US report on foreign trade barriers it stated that China, India and Egypt still maintain some of the highest barriers on imported clothes and textile products, as well as upholding tricky laws concerning retailing and distribution.

As part of its WTO commitments, China changed its laws in December to allow foreign companies to open wholly owned retail operations within the country, but foreign firms still face a plethora of regulations from local governments that can slow their entry into the market.

Counterfeiting in China is another issue that has reached "epidemic levels and caused serious economic harm to European and US businesses. The U.S. has been pressing the Chinese government to improve intellectual property rights enforcement and Vice Premier Wu Yi presented an "action plan" in April 2004 calling for improved legal measures and increased criminal prosecution of IPR violations, as well as increased enforcement.

In India, trading tariffs have not come down and are remarkable high, according to the report. For many companies, India continues to maintain numerous textile trade barriers, and remains one of the most heavily protected textile markets in the world," the report noted. While the US has been a difficult market for European collections to penetrate, there are no sanctions or penalties for EU companies wanted to expand to the US. It is those companies with a solid knowledge of the foreign market that tend to succeed in hitting the jackpot abroad.