Mongolia’s Textile Exports to the US Drop US$100 million

Before repealing textile and clothing quotas in 2005, many
economists speculated that some landlocked countries, especially those
near China, would face many new difficulties. On May 25, the UN released results studying the past year, since the quotas were lifted.

Mongolia has been among the hardest-hit countries since
the end of textile and clothing quotas in early 2005, with the value
and volume of Mongolian textile and clothing exports to virtually its
only customer, the United States, plummeting by 41 percent and 30
percent respectively

U.S. imports of Mongolian ready-made garments dropped from US$229
million to US$135 million. At the same time, U.S. imports of knitted
cashmere jerseys and pullovers – traditionally one of Mongolia’s
best-known products – plunged more than 90 percent. More than half of
Mongolia’s foreign exchange generated from cashmere-related trade
consists of exports of raw cashmere to China, and re-importing it to
produce final products, since Mongolia lacks a cashmere processing
sector.

Continued: http://mongolia.neweurasia.net/?p=218

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