Value-added services to boost textiles

Low wage costs would not be the sole factor in the battle of supremacy of world textile trade post-MFA and countries that aspire to maintain export-led strategy must also develop their expertise in value-added services, according to a OECD report.

"Countries that aspire to maintain an export-led strategy in textiles and clothing need to complement their cluster of expertise in manufacturing by developing their expertise in higher value-added service segments of supply chain like design, sourcing or retail distribution," the report said.

For expertise in higher value-added segments, national suppliers need to place greater emphasis on education and training of services-related skills, OECD said.

"The suppliers should also encourage the establishment of joint structures where domestic suppliers can share market knowledge and offer more integrated solutions to prospective buyers," the study added.

OECD, however, said elimination of quota restriction from January 1, 2005 will open the way for the most competitive developing countries to develop strong clusters of textile expertise, enabling them to handle all stages of production chain from growing natural fibres to producing clothing.