The Multi Fibre Arrangement (MFA) governed the world trade in

textiles Textile is an Hyponymy and hypernymy, umbrella term that includes various Fiber, fiber-based materials, including fibers, yarns, Staple (textiles)#Filament fiber, filaments, Thread (yarn), threads, and different types of #Fabric, fabric. ...

and garments from 1974 through 1994, imposing quotas on the amount

developing countries A developing country is a sovereign state with a less-developed Secondary sector of the economy, industrial base and a lower Human Development Index (HDI) relative to developed countries. However, this definition is not universally agreed upon. ...

could

export An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is a ...

to developed countries. Its successor, the Agreement on Textiles and Clothing (ATC), expired on 1 January 2005.

History

Since the (re)emergence of developing countries as a source of cotton textiles, production from these countries steadily increased after colonial independence. A number of treaties concerning Short-Term Arrangements regarding International Trade in Cotton Textiles (

Geneva Geneva ( , ; ) ; ; . is the List of cities in Switzerland, second-most populous city in Switzerland and the most populous in French-speaking Romandy. Situated in the southwest of the country, where the Rhône exits Lake Geneva, it is the ca ...

, 21 July 1961); Long-Term Arrangement regarding International Trade in Cotton Textiles (Geneva, 9 February 1962 and 15 June 1970), and Arrangement regarding International Trade in Textiles (Geneva, 20 December 1973) established trade rules in textiles. Eventually, the Multi Fibre Agreement was established in 1974.

Impact

The MFA was introduced in 1974 as a short-term measure intended to allow developed countries to adjust to imports from the developing world. At the General Agreement on Tariffs and Trade (GATT) Uruguay Round, it was decided to bring the textile trade under the jurisdiction of the

World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...

. The Agreement on Textiles and Clothing provided for the gradual dismantling of the quotas that existed under the MFA. This process was completed on 1 January 2005. However, large tariffs remained in place on many textile products. Bangladesh was expected to suffer the most from the ending of the MFA, as it was expected to face more competition, particularly from

China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...

. However, this was not the case. It turns out that even in the face of other economic giants, Bangladesh's labor is "cheaper than anywhere else in the world." While some smaller factories were documented making pay cuts and layoffs, most downsizing was essentially speculative – the orders for goods kept coming even after the MFA expired. In fact, Bangladesh's exports increased in value by about $500 million in 2006.Haider, Mahtab. "Defying predictions, Bangladesh’s garment factories thrive." The Christian Science Monitor. 7 Feb 2006. 11 Feb 2007. http://www.csmonitor.com/2006/0207/p04s02-wosc.html

References

External links

BBC News Online BBC News Online is the website of BBC News, the division of the BBC responsible for newsgathering and production. It is one of the most popular news websites, with 1.2 billion website visits in April 2021, as well as being used by 60% of the U ...

EU warns China on textile exports
24 April 2005 *

New York Times ''The New York Times'' (''NYT'') is an American daily newspaper based in New York City. ''The New York Times'' covers domestic, national, and international news, and publishes opinion pieces, investigative reports, and reviews. As one of ...

China to Limit Textile Exports to Europe
11 June 2005 *

EU and China reach textile deal
5 September 2005 * Dollars & Sense
Falling Off a Cliff: Millions of garment workers worldwide stand to lose their jobs with this year's changes in global textile trade rules
September/October 2005 * As regards the EU-China trade relations, se
Paolo Farah
(2006
Five Years of China’s WTO Membership. EU and US Perspectives about China’s Compliance with Transparency Commitments and the Transitional Review Mechanism
''Legal Issues of Economic Integration'', Kluwer Law International, Volume 33, Number 3, pp. 263–304.
Text of MFA from Stanford GATT ArchiveText of MFA plus subsequent amendments etc from GATT ArchiveMultifibRearrangement BA Thesis Blog
{{Authority control History of international trade Foreign relations of the European Union Textile industry International trade organizations

History

Impact

See also

References

External links