India is expected to become the primary alternative supplier for most US textile and apparel importers after the expiry of quotas in 2005 under the Uruguay Round Agreement on Textiles and Clothing, an American trade panel has said.

"To reduce the risk of sourcing from only one country, American importers also plan to expand trade relationships with other low-cost countries as alternatives to China, particularly India," the US International Trade Commission said in a report on the effects of the new textile and apparel trade regime published on Monday.

It said India also had a very large manufacturing base to produce a wide range of textiles and apparel at competitive prices and a large supply of relatively low-cost skilled labour.

It noted that over the long term, exports from China and India could be affected by their strong economic growth, which is likely to increase domestic demand for textiles and apparel, as well as for labour and capital to make these products.

China, the report noted is poised to become a dominant player, the supplier of choice in the US textile and apparel market because it has the ability to make almost any type of textile and apparel product at any quality level at a competitive price.

The report said, however, that it is difficult to assess how fast textile and apparel imports from that country are likely to grow because of the uncertainty over the use by the US and other importing countries of the textile-specific safeguard provisions in China's World Trade Organisation accession agreements.

In November 2003 the Bush administration imposed quotas on three types of textile products imported from China under the provision allowing such measures in instances when Chinese imports are causing domestic US market disruptions.

Bangladesh or Pakistan are also expected to emerge as major US suppliers for a narrower but still significant range of goods, such as mass-produced basic knit cotton tops and woven cotton shirts and pants (Bangladesh) or men's and boys' cotton apparel (Pakistan), the report added.