Multi-Fibre Arrangement

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Multi-Fibre Arrangement

An expired international agreement that set quotas on the textiles and clothing developing countries could export to developed countries. The purpose behind the Multi-Fibre Arrangement was to allow developed countries time to adjust to competition from developing countries, which could produce the same textile products much more cheaply. It was thought that developing countries could flood the markets in developed countries with less expensive textiles, which would have had a negative effect on the developed countries' economies. Critics of the Arrangement argued this hampered development. It was in effect from 1974 through the end of 2004. It is formally called the Agreement on Textile and Clothing. See also: World Trade Organization.

Multi-Fibre Arrangement (MFA)

a trade pact between some 80 developed and DEVELOPING COUNTRIES, introduced in 1974, that regulates INTERNATIONAL TRADE in textiles and clothing through the use of QUOTAS on imports. Its purpose is to give poor countries guaranteed and growing access to markets in Europe and North America but at the same time to ensure this growth does not disrupt the older established textile clothing industries of the developed countries.

The MFA is a form of PROTECTIONISM that discriminates against the interests of the less developed countries, many of which are highly dependent on the textile industries as a leading sector in promoting their ECONOMIC DEVELOPMENT; it is contrary to the principles of the WORLD TRADE ORGANIZATION but has been conveniently ‘exempted’ from that body's rules of good conduct. Under an agreement reached in the ‘Uruguay Round’ of negotiations, however, the MFA was phased out in 2005.

References in periodicals archive ?
The most important factor contributing to this change in fortune was phasing out the Multi-Fiber Arrangement (MFA), which was completed in early 2005.
We feared that the ending of the Multi-Fiber Arrangement at the end of 2004 could cost the sector 30,000-40,000 jobs.
The report was referring to the impact of the expiration of the Multi-Fiber Arrangement, a four-decade-old agreement that regulated the world's exports and imports of textile and apparel products by allowing countries to impose quotas.
With the lifting of Multi-Fiber Arrangement quotas on apparel and textile imports from other countries Jan.
In 1974, GATT members agreed to expand the reach of this agreement by adopting the Multi-Fiber Arrangement (MFA), which allowed importing countries to impose quantitative restrictions on imports of wool, synthetic fiber and silk blends and vegetable fiber textiles and apparel products to prevent market disruption.
The range of products subject to restraints expanded from mostly cotton textiles under the early quota arrangements in the 1960s and early 1970s to an ever increasing list of natural and manmade fibers under four iterations of the Multi-Fiber Arrangement (MFA) beginning in 1974.
This multilateral agreement - known as the Arrangement Regarding International Trade in Textiles or more commonly as the Multi-Fiber Arrangement - went into effect in January 1974.
Under the old Multi-Fiber Arrangement [which lapsed with the advent of the WTO in Jan.
With the support of the United States, the Multi-Fiber Arrangement will be phased out over 10 years.
US imports of textiles and clothing covered by the former Multi-Fiber Arrangement (MFA) continued to surge in 2004, rising by 10.
Under the WTO, the Multi-Fiber Arrangement, a four-decade-old agreement that regulated the world's exports and imports of textile and apparel products by allowing countries to impose quotas, expired Jan.
Under the World Trade Organization, the Multi-Fiber Arrangement, a four-decade-old agreement that allowed the WTO to impose quotas on the import of textile and apparel products expired Jan.

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