Multi-Fibre Arrangement

(redirected from Multifiber 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 ?
Global textile production and consumption trends have long been subjected to and governed by a set of trade regulations, prominent among them being the Agreement on Textile and Clothing (ATC), formerly known as Multifiber Arrangement (MFA).
Manufacturing jobs have moved overseas during the past two decades and this trend continues, especially now in the apparel sector with the elimination of the Multifiber Arrangement in January 2005.
This occurred despite import restrictions set by an international pact called the Multifiber Arrangement (due to expire in 2005) that uses quotas to regulate the $50 billion world trade in garments.
Tracing developments within the apparel and textile industries since the end of World War II, Rosen assesses the effects of trade liberalization and details the political machinations behind the steady progression away from the relative protection of these sectors to the opening of markets with the ending of the Multifiber Arrangement under the Clinton administration in 1995.
Such a multifiber arrangement should also make it easier to pinpoint an impact's location, he adds.
Moreover, while urging the Philippines to remove protectionist trade barriers to stimulate export growth, Philippine exports of textiles and apparel to the United States were being restricted under the Multifiber Arrangement!
William Cline of the Institute for International Economics estimates the combined costs to American consumers of textile tariffs and Multifiber Arrangement quotas (for all countries) at $20,300,000,000 on the wholesale level and as much as $40,000,000,000 at the retail level.