
Trade Issues | |
The Mischief Of Clothing Quotas |
Trade experts say politicians have promised free trade in apparel again and again -- but they have only made the quota system all the more extensive and convoluted. There are now no fewer than 1,000 import allotments, covering scores of categories from each of dozens of countries. So U.S. consumers must pay tens of billions of dollars every year in higher prices. Here are a few of the inefficiencies generated by the apparel-quota process:
The U.S. government employs "jump teams" to visit overseas factories and peruse invoices, count sewing machines and watch seamstresses. As a result of these and other absurdities, Americans are the ones hurt. For example, a lady's wool/acrylic alpaca hand-knitted sweater from China costs 67 percent more at wholesale thanks to quotas and duties. Experts say that for cheaper fabrics, like cotton, the effect can be even greater. Source: Andrew Tanzer, "The Great Quota Hustle," Forbes, March 6, 2000. For more on Tariffs and Other Trade Barriers http://www.ncpa.org/pd/trade/trade8.html |