These processes of trade liberalisation, along with changes in retail markets (increasingly concentration and the development of 'lean retailing'), are major factors underlying the reorganisation of the industry, to a large extent driven by buyers in major northern markets such as the US and Europe. Different trends have been observed and predicted, as a result of this restructuring, including shift of production sites, and regional consolidation of commodity chains. Concomitantly there may be increasing product differentiation, increased use of outsourcing via subcontracting to home-based workers, and differentiation between 'core' and 'fringe' homeworkers.

Given the trade polciy reforms underway in the garments sector, it is important to improve understanding of the interface between trade policy and value chain restructuring. This is a first step to better understanding how trade policy reforms may impact on developing country garment producers' market access, and on employment patterns and conditions in local industries.