When import quotas on textile products coming into the United States ended January 1, 2005, under World Trade Organization agreements signed 10 years earlier, a flood of clothing poured in from China. Responded with restrictions on Chinese apparel imports. Yet according to Wharton faculty and industry executives, these restrictions will only delay, not end, the global move toward quota free garment trade.
Howard Pack, Wharton professor of business and public policy, agrees that, in situations like these, consumers benefit fromlower prices and are much better off. Textile workers who have lost their jobs. A dedicated fund with relatively small tax revenues could be used to finance retraining and relocation.
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