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.
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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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
From the 1960s to the 1990s, the industry benefited from quotas imposed under the Multi Fibre Arrangement, derogatory international agreements which set export quotas on low-wage countries to protect the textile industries of developed countries against competition.
To comply with the General Agreement on Tariffs and Trade (GATT), Canada terminated the Multi Fibre Arrangement in 1995 and gradually eliminated quotas on imports of clothing, fabric and textiles over a 10-year period.
The beginning of the 21st century was an exciting time for the textile industry of Pakistan that was gearing up for the removal of quota regime under the Multi Fibre Arrangement in 2005.
The deal was supposed to control the Chinese imports that had flooded into the EU from January after the expiry of the three-decade old Multi Fibre Arrangement (MFA) setting textile and clothing quotas.
Pakistan is gearing up to enter in a new era of textile and clothing business after 14 months when Multi Fibre Arrangement (MFA) comes to final end in December 2004.
Only the Chief Economist remained at the center, becoming part of a new public affairs department whose primary role was government and trade relations, and whose work was particularly oriented towards the Multi Fibre Arrangement, a matter of great importance to both the fibers and textiles activities.
The explosion in China's textile trade has followed the end of the Multi Fibre Arrangement on January 1 this year.
They said the removal of import quotas on textiles at the end of the year with the demise of the 1974 Multi Fibre Arrangement would lead to a Chinese "monopoly" in the sector that would force industry elsewhere to shed at least 30 million jobs.

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