In 1995, the Uruguay Round under the World Trade Organization (WTO) came into effect. Corollarily, the Agreement on Textiles and Clothing was signed which called for the removal of all quotas over a 10-year phase-out period. This Agreement integrated textiles and apparel into the mainstream of trade. How should the Philippines therefore position itself in this new era of trade in garments? This article discusses the state of the Philippine garments industry, with specific focus on its competitiveness and logistic infrastructure, and how the industry can make use of the prospective free trade agreement with the US.
