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 ?
The quota system under the MultiFibre Arrangement (MFA) provided by North American and European importers and which guaranteed sure market and profits to garments exporters in the earlier decades was removed in 2004 under the Agreement on Clothing and Textiles, per arrangement with the WTO.
Its fortunes were ensured by World Trade Organization's Multifibre Arrangement (1974) which placed quotas on the importation of certain textile and clothing products, thus protecting local production.
imports of apparel and textiles under the multifibre arrangement (MFA) ended abruptly in January 2005.
Until 31 December 2004, the WTO Agreement on Textiles and Clothing and its predecessor, the Multifibre Arrangement (MFA), allowed big developed markets like the United States to restrict imports of textiles and clothing through quotas.
Chinese shipments of sweaters, trousers and other low-cost clothing soared after the worldwide MultiFibre Arrangement quota system expired on January 1.
The Multifibre Arrangement (MFA) multilaterally regularized the quota-based trade restrictions that characterized this first phase of the liberal trade regime.
Mauritius has also benefited from preferential access of its sugar production and textiles to the European market through the Lome Convention (now the Cotonou Accords) and the Multifibre Arrangement.
(1989) Effects of MultiFibre Arrangement on Developing Countries: An Empirical Investigation.
The Multifibre Arrangement (MFA) came into being in 1961.
The Multifibre Arrangement was another, though governments have now undertaken to phase it out.
After two more years the Multifibre Arrangement (MFA-I) was signed by roughly 50 countries on 1st January, 1974.
The Ministers have agreed to take stock of the new Generalised Scheme of Preferences (situation resulting from the demise of the Multifibre Arrangement quotas).