Agreement of Textile and Clothing

The Agreement of Textile and Clothing (ATC) is the current legal framework for developing country's exports of garments, fabric and textiles. The ATC, which Thailand is a signatory nation, puts a textile quota system in place for the export of these products to the USA, Canada, European Union (EU) and Norway. The ATC sets out to incrementally raise the quotas on textiles and clothing and fully eliminate them by the year 2005, integrating the sector fully into GATT principles. The Department of Foreign Trade administers the textile quota allocation to Thai exporters by granting them Textile Export Licenses for products entering the American, Canadian or European markets. Individual companies are usually allowed a 33% annual growth in their quota allocation if they participate in Department of Export promotional activities and can apply to receive extra quota's unused by other companies if necessary.