IMPACT OF TEXTILE TRADE LIBERALIZATION POST ATC 2005 AGAINST THE DEVELOPMENT OF INDONESIA TEXTILE INDUSTRY (2005-2014)

Abstract

This research describes about the development of Indonesia textile industry post Agreement of Textile and Clothing (ATC) 2005. ATC is an agreement under World Trade Organization (WTO) that established as ten years transition period towards international textile trade liberalization. ATC expected to eliminate quota limits and various barriers in international textile trade. After the end of ATC in 2005, it became the beginning of international textile trade liberalization. Indonesia faced the new challenges which had some impacts for Indonesia textile industry with the rise of the trade liberalization. Those impacts are affecting the government policies on both domestic and global market access, and also affecting the total of Indonesia’s textile production every year. In this research the researcher will analyzes and describes the impacts of international textile trade liberalization towards Indonesia textile industry and support it with some data. The main problem in this research is how the development and impacts of Indonesian textile exports post ATC. In explaining this problem, researcher used Liberalism theory, Economic Foreign Policy, and International Trade concept as conceptual framework also used descriptive qualitative method as the research method. As the result for this research is textile trade liberalization which marked with the end of ATC had significant impacts for the development of Indonesia textile industry.