Multi-Fibre Arrangement

(redirected from Multi-Fiber 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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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 ?
Lopez said he aims to "push footwear and garments as duty-free goods under the FTA" as Manila looks to revive its garments industry which has suffered greatly since 1995 as a result of the phaseout of the Multi-fiber Arrangement (MFA).
Subsequent discussion encompasses a theory of domestic coalitions, communication and inclusiveness, the Multi-Fiber Arrangement (MFA), access to global markets, labor rights, human rights, and the international trading regime.
The textile quotas under the Multi-Fiber Arrangement of January 2005 have been moderate in Bangladesh and the industry is divided on their impact.
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.
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.
"Under the old Multi-Fiber Arrangement [which lapsed with the advent of the WTO in Jan.
GATT and the Multi-Fiber Arrangement. Among the factors that are expected to have a substantial impact on employment in the textiles and apparel industries, perhaps the most influential will be the trade policy agreed to in the General Agreement on Tariffs and Trade (GATT).
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.

Full browser ?