Quotas on Clothing Imports: Impact and Determinants of EU Trade Policy

Juliette Milgram Baleix

Review of International Economics, 2005, vol. 13, issue 3, 445-460

Abstract: We assess the impact of the phasing‐out of quotas on European clothing imports within the framework of the phase‐out of the Multi‐Fiber Agreement and the accession of the CEEC. We use 1996 data on trade barriers for 20 categories of clothing products and 22 exporters. The estimation of a standard gravity equation concludes that tariffs have a large and negative impact as expected but seldom corroborated in the literature. The negative impact of non‐tariff barriers also appears clearly after controlling for an endogeneity bias by the instrumental variables method. The phasing‐out of quotas should increase EU imports by 20%.

Date: 2005
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