Global value chains (GVCs) is a key study area in development economics. GVCs play a vital role for eliminating poverty and development. My target audience for this digital artifact is policy makers, development practitioners and students who engaged in development studies. This presentation provides first, a brief description about GVC of apparel industry, strategic moves to developing nations in South Asia and factor endowments. Second, it focuses on an island nation of Sri Lanka: an issue of shifting from cotton to MMFs cloth fabrics products with a view of high tariffs and import obstacles on MMFs raw materials. Third, the presentation suggests a solution for a policy revision of respective tariffs to increase the participation and followed by challenges in implementation. Finally, it discusses reasons for participation of all stakeholders and desired outcomes by increasing forward and backward participation in GVC of apparel industry.

2.  Apparel production is
organized in global value
chains
 Cover the full range of
activities: a product from its
conception to its end use
 Decentralized, globally
dispersed production
networks coordinated by lead
firms
 Lead firms control highest
value activities: retailing,
marketing, branding, and
design

4. Factor Endowments
 Abundant low-cost labor
supply makes
 Cost advantage
 Policy reforms encourage
apparel manufacturers
 Larger markets
 Geographical locations
and connectivity

5.  Hyper –Specialization  Durable firm to firm
relationship
 Sri Lanka is a developing nation in South Asia
 Sri Lanka has perhaps progressed the most in
moving up the apparel value chain

6.  Largest gross export
earner
 $5 billion in Export
Revenue in 2018
 44% of the national export
revenue
 Large and more capable
players: can perform a
wider range of activities
 Available workforce and
women engagement

7. Apparel industry does
a concentration on
cotton products …
Shifting from a concentration on cotton to MMF
cloth fabrics and raw materials …

8. High tariffs and
import barriers on
MMFs cloth fabrics and
raw materials

9.  Revisit the current tariffs system for import of
man-made fibers (MMFs) cloth materials , trim
and machineries
 Identify the barriers that discourage to imports
apparel inputs such as MMFs
 Revise and change the current policy on import
of apparel inputs by reducing tariffs level on
synthetic fiber raw materials/MMFs and remove
significant import barriers

10.  MMFs supplying countries
(those who also engage in
garment products of MMFs )
would impose high tariffs
on export of MMFs, trims
and machineries for Sri
Lanka
 Bilateral negotiations are
required with MMFs
supplying countries
Products from MMFs raw
materials generate more
non biodegradable waste
which increases
environmental pollution

11.  This policy change will ensure the smooth
moving in synthetic fiber raw materials/MMFs
supply and encourage apparel industry to
increase the export volume and enhance its
participation in apparel GVCs
 Create new apparel jobs, of which half would
be for women: benefits their families and
society
 New jobs would be good for development: they
employ low-skilled workers in large numbers
 Sri Lanka can position itself as a regional hub to
facilitate sourcing for international buyers for
apparel products of MMFs

12. Infographics Source: Internet