Multi-Fibre Arrangement

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 ?
employment, wages, and poverty following the end of the multi-fibre arrangement.
This report for policy makers assesses the effects of the phase-out of the Multi-Fibre Arrangement (MFA) and the Agreement on Textiles and Clothing (ACT) in 2005, analyzing the effects on employment, wages, poverty, and the structure of the apparel industry in nine countries in South Asia, Southeast Asia, Latin America, and the Caribbean.
The textile industry collapsed in some countries after the expiration in late 2005 of WTO's Multi-Fibre Arrangement, which largely put an end to quota advantages for African countries.
Then in January 2005, the Multi-Fibre Arrangement, which governed the world's textile trade expired and negatively affected Lesotho's status under the African Growth and Opportunity Act causing a catastrophic shakeout of the textile industry in the country.
US imports of textiles and clothing covered by the former Multi-Fibre Arrangement (MFA) continued to surge in 2004, rising by 10.
A key case is negotiations on the lifting of textile quotas when the global multi-fibre arrangement expires in 2004.
Textile quotas under the Multi-Fibre Arrangement cost poor countries |pounds~35bn ($52.
These had restricted Chinese supplies since the 1980s -- first under the Multi-Fibre Arrangement (MFA) and more recently under the Agreement on Textiles and Clothing (ATC).
She covers global buyers, the phase-out of the Multi-Fibre Arrangement, and the global economic crisis; clothing exports in low-income countries in Sub-Saharan Africa from footloose to regional integration; Cambodia's clothing exports from assembly to full-package supplier; Bangladesh's clothing exports from lowest cost to broader capabilities; and how to compete in the post-quota and post crisis world.
Its central feature is the phasing out of a set of bilateral quotas called the Multi-Fibre Arrangement (MFA).
Furthermore, they include, in addition to tariff reductions, the phasing out of the Multi-Fibre Arrangement (MFA) and the integration of agriculture into the multilateral trading framework.
The impact of the Agreement on Textiles and Clothing to liberalize trade by 2005 will be critical for textile exporters in these countries with the removal of the quotas associated with the Multi-Fibre Arrangements (MFA).

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