Material quotas were killed among WTO members at the first day of 2005 as per the Settlement on Textiles and Clothing ATC. Be that as it may, resistance to amount expulsion spread in the US and EU. Subsequently, China agreed with the EU and the US in June and November 2005 respectively. The China-US understanding, viable from January 2006, governs the exports of a sum of 21 groups including 34 categories of Chinese textiles and clothing products to the US during 2006-2008. The China-EU arrangement, powerful from June 2005, covers 10 categories of Chinese textiles and clothing exports to the EU during 2005-2007. Then again, the central area and Hong Kong concurred in October 2005 to additionally change the central area market for Hong Kong companies under the third phase of the Central area and Hong Kong Closer Monetary Partnership Game plan CEPA III.

Along with different products of Hong Kong beginning, the central area consented to give all products of Hong Kong beginning, including clothing items, duty free treatment starting from 1 January 2006. As per the stipulated procedures, products which have no existing CEPA rules of beginning, will appreciate levy free treatment upon applications by neighborhood manufacturers and upon the CEPA rule of origins being concurred and met. Hong Kong clothing companies are legitimate for ODM and OEM creation. They can convey quality clothing articles in short lead time, as unfamiliar importers and retailers request clothing suppliers to straighten out supply affix the executives to ensure robe chinoise satin the arranged merchandise arriving at the store floor brilliantly. Increasingly, Hong Kong clothing companies, the established ones specifically, have shown enthusiasm for brand advancement.

Hong Kong’s all out exports of clothing rose year-on-year by 9% in the first 11 months of 2005. While Hong Kong’s re-exports of clothing rose by 20%, domestic exports fell by 14%. In the first 11 months of 2005, Hong Kong’s clothing exports to the US and EU rose by 11% and 18% respectively.  The clothing industry is a significant assembling sector of Hong Kong. Its gross result is one of the highest among all assembling sectors, adding up to HK35.9 billion out of 2003. It is the largest assembling boss in Hong Kong, with 1,673 establishments employing 28,752 workers as of June 2005. It is also the main worker in terms of domestic exports, taking up 40% of the all out in the first 11 months of 2005. Hong Kong’s geographic limit has never constrained the advancement of the forward-looking clothing industry. Most of clothing manufacturers have set up offshore creation facilities trying to lessen activity costs. Movement of creation facilities offshore has anyway resulted in a steady decrease in the quantity of clothing manufacturers in Hong Kong.