On January 1, 2005, the World Trade Organization agreement on textiles and clothing expired. All WTO members have unrestricted access to the American and European markets for their textiles exports. The abolition of quotas is likely to prompt tremendous growth in this industry, while causing short term political and economic challenges to established European businesses faced with low cost rival imports from China and other "tiger" economies. The surge in Chinese exports does not just threaten established European producers; it also threatens to undermine other developing countries who currently benefit from preferential trade agreements with the EU and the US, such as Turkey with the EU and Mexico with the US.
