| The textile industry is a traditional advantage industry of our country, which made important contribution for national economic development. Textile industry of our country also has stronger international competitiveness and depend on international market to higher degree.Fabrics and clothing trade are one of the disputable trade fields between developing country and developed country. "ATC " replace " MFA", which indicate fabrics and clothing trade moving towards track of liberalization. According to the "ATC", the quota of the textiles will be canceled in an all-round way from January 1, 2005. However, according to the commitment that our country joins in WTO, the transitional security mechanism of fabrics of our country will extend to December 10, 2012. So our country can not enjoy right of trade liberalization completely from January 1, 2005 according to "ATC". Besides, the fabrics of our country will face the fiercer international market of the competition.Under fabrics liberalization of trade, I carry on theory analysis and analyse fabrics international competitiveness of our country with the real example, then put forward the countermeasure of improving the international competitiveness of our country's fabrics.This article consists of four parts.First part, I use the competitiveness theory of trade to analyse the international competitiveness of our country's fabrics qualitatively. From three aspects: comparative advantage theory, new international competitiveness theory, trade creation and trade deflection theory. Comparative advantage theory consists of traditional comparative advantage theory and new trade comparative advantage theory. In traditional comparative advantage theory, I introduce Adam Smith's absolute cost theory, David Ricardo's relative cost theory and factor endowments theory. Then I point out that according to traditional comparative advantage theory, the international competition advantage of our country's fabrics - abundant natural resources and low-priced workforce. In new trade comparative advantage theory, I introduce manpower capital theory, technological theory and large-scale production theory, then analyse the international competitiveness of our country's fabrics from this three aspects. In further, I point out that though our country is the textile big country, but not the textile powerful country. In the new theory of the international competitiveness, I introduce Michael Potter's national competition advantage theory. I analyse the reason that why international competitiveness of textile industry of our country drops with "diamond theory", and use four stage theories of national economic development to point out which developing stage our national textile industry is in, and answer on how to improve international competitiveness, namely update the "diamond factor " quality, change competition developing stage. In trade creation and trade deflection with international competitiveness of fabrics of our country, I recommended the trade creation and trade deflection theory at first, and then analyse the effect of trade creation and trade deflection after the implement of NAFTA (North American Free Trade Agreement). In further, I analyse impact effect on two aspects of our national fabrics' international competitiveness caused by trade creation and trade deflection, namely has reduced the international competitiveness of fabrics exported and textile technology advantage of our country. In the second part, I analyse the liberalization of trade of the fabrics. I describe from two aspects, the environment of fabrics trade liberalization and fabrics market variation tendency caused by liberalization of trade. The environment of the fabrics trade liberalization is: relevant protocol of the fabrics trade and TBT (Technical barriers to trade). I introduce the course of liberalization of the fabrics trade, and the advantage that " ATC " bring to our country and limiting conditions, and act as the detailed introduction on the green trade barrier which re...
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