The penetration of imports into the U.S. fashion business has given rise to a highly vocal battle between advocates of protectionism and proponents of free trade. Protectionism means the reduction, limitation, or exclusion of merchandise from other countries. Free trade means avoiding protectionist measures and letting goods flow freely among countries.
On the protectionist side are many U.S. producers of apparel, accessories, and textiles; the major industry union (UNITE); and most of the manufacturing industry's trade associations. All have a record of continuously lobbying in Washington for more protection from imports. On the other side are the retailers and importers, their trade associations, apparel firms with production in other countries, and some consumer groups.
Officially, at least, the United States supports a free trade position, which means that restrictions on imports are kept to a minimum. This "official" position suggests that excessive restrictions on foreign goods will lower our standard of living for the following reasons:
Trade barriers mean high prices for consumers. Consumers do not get the benefit of competition among countries that leads to the best values in what they buy. Decreased competition may allow domestic firms to charge higher prices.
Domestic producers that cannot successfully compete in the world market are not entitled to special protection from imports by the government.
Nations affected by restrictive import measures taken by this country may retaliate against what they consider to be American protectionism and thus damage the export prospects of other U.S. companies. Jobs may be saved in one industry only to be lost in another when foreign countries retaliate by buying less from the United States.
U.S. firms that rely on imports would be less able to compete and would lose business.
Erecting barriers to restrict the products of other countries creates political ill will with countries with whom we may need to work on other matters. For example, if the U.S wants to maintain a military base in a country, the local govt is likely to be less cooperative if their products are restricted from U.S markets.
Growth in the domestic market and tremendous upswings in the international market, as a result of freer market access facilitated by WTO, provides a bright scenario for the Indian industry
Participants