The Impact of Phasing-out Textile Quota on the Egyptian Textile and Clothing Sector (Case studies from Alexandria)

Abstract

Quantitative restrictions on “Textile and Clothing” (T&C) trade were completely removed in January 2005.
Consequently, Egyptian T&C exporters have lost the quasi-guaranteed market access to the “European Union” (EU) and “United
States” (US) markets and they became subject to fierce competition in global market. This research aims to empirically
investigate the effect of quota abolishment on the Egyptian T&C sector during the period 1995-2008. Quota phase-out had a
negative effect on exports especially to the EU market. However, liberalizing T&C trade was not the only factor causing the
declining trend of exports, as several domestic and international challenges facing the sector led to reduced competitiveness.
Those results were proved by a number of case studies using some of the T&C companies in Alexandria as a sample. The
results of this research provide guidelines for a development strategy to flourish the sector.