Multi Fibre Arrangement

Multi Fibre Arrangement

The Multi Fibre Arrangement (MFA) governed the world trade in textiles and garments from 1974 through 2004, imposing quotas on the amount developing countries could export to developed countries. It expired on 1 January 2005.

The MFA was introduced in 1974 as a short-term measure intended to allow developed countries to adjust to imports from the developing world. Developing countries have a natural advantage in textile production because it is labor intensive and they have low labor costs. According to a World Bank/International Monetary Fund (IMF) study, the system has cost the developing world 27 million jobs and $40 billion a year in lost exports. [1]

However, the Arrangement was not negative for all developing countries. For example the European Union (EU) imposed no restrictions or duties on imports from the very poorest countries, such as Bangladesh, leading to a massive expansion of the industry there.

At the General Agreement on Tariffs and Trade (GATT) Uruguay Round, it was decided to bring the textile trade under the jurisdiction of the World Trade Organization. The Agreement on Textiles and Clothing provided for the gradual dismantling of the quotas that existed under the MFA. This process was completed on 1 January 2005. However, large tariffs remain in place on many textile products.

Bangladesh was expected to suffer the most from the ending of the MFA, as it was expected to face more competition, particularly from China. However, this was not the case. It turns out that even in the face of other economic giants, Bangladesh’s labor is “cheaper than anywhere else in the world.” While some smaller factories were documented making pay cuts and layoffs, most downsizing was essentially speculative – the orders for goods kept coming even after the MFA expired. In fact, Bangladesh's exports increased in value by about $500 million in 2006.[2]

However, poorer countries within the developed world, such as Greece and Portugal, are expected to lose out.

During early 2005, textile and clothing exports from China to the West grew by 100% or more in many items, leading the US and EU to cite China's WTO accession agreement allowing them to restrict the rate of growth to 7.5% per year until 2008. In June, China agreed with the EU to limit the rate to 10% for 3 years. No such agreement was reached with the US, which imposed its own import growth quotas of 7.5% instead.

When the EU announced their new quotas to replace the lapsed MFA, Chinese manufacturers accelerated their shipping of the goods intended for the European market. This used up a full year's quota almost immediately. As a result, 75 million items of imported Chinese garments were held in European ports in August 2005. A diplomatic resolution was reached at the beginning of September 2005 during Tony Blair's visit to China, putting an end to a situation the UK press had dubbed "Bra Wars".

See also

References

  1. ^ Presentation by H.E. K.M. Chandrasekhar, Chairman ITCB, EC Conference on the Future of Textiles and Clothing after 2004, Brussels, 5 – 6 May 2003. http://www.itcb.org/Documents/ITCB-MI35.pdf
  2. ^ Haider, Mahtab. “Defying predictions, Bangladesh’s garment factories thrive.” The Christian Science Monitor. 7 Feb 2006. 11 Feb 2007. http://www.csmonitor.com/2006/0207/p04s02-wosc.html

External links


Wikimedia Foundation. 2010.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Многостороннее соглашение по текстильным волокнам — MULTI FIBRE ARRANGEMENT (MFA) Торговое соглашение, объединяющее около 80 стран мира, которое предусматривает регулирование международной торговли текстильными изделиями c использованием импортных квот. Целью соглашения, с одной стороны, является… …   Словарь-справочник по экономике

  • textile — /teks tuyl, til/, n. 1. any cloth or goods produced by weaving, knitting, or felting. 2. a material, as a fiber or yarn, used in or suitable for weaving: Glass can be used as a textile. adj. 3. woven or capable of being woven: textile fabrics. 4 …   Universalium

  • Maseru — Kingsway in central Maseru Map of Lesotho showing Maseru …   Wikipedia

  • MFA — may refer to: An academic degree or professional field: Masters of Finance and Accounting Master of Financial Analysis Master of Fine Arts Material Flow Accounting Material Flow Analysis A concept or phrase: Made For Ads Made for AdSense An… …   Wikipedia

  • Leicestershire — For the former parliamentary constituency, see Leicestershire (UK Parliament constituency). Leicestershire Motto of County Council: For ard, For ard …   Wikipedia

  • MFA — ist die Abkürzung für Made For AdSense, ein Begriff für Internetseiten, welche ausschließlich dem Zweck dienen, AdSense Werbung (Google) zu platzieren Malta Football Association, der Maltesische Fußballverband Master of Fine Arts Militärfachliche …   Deutsch Wikipedia

  • МНОГОСТОРОННЕЕ СОГЛАШЕНИЕ ПО ТЕКСТИЛЮ — (Multi Fibre Arrangement, MFA) Международное соглашение между странами, экспортирующими и импортирующими текстильные товары и одежду, впервые подписанное в 1973 г. и несколько раз продлевавшееся. Международное соглашение по текстилю ограничило… …   Экономический словарь

  • УРУГВАЙСКИЙ РАУНД — (Uruguay Round) Последний раунд торговых переговоров под эгидой Генерального соглашения о тарифах и торговле (ГАТТ) (General Agreement on Tariffs and Trade (GATT); этот раунд начался в 1986 г. и закончился в 1994 г. Начался раунд с рассмотрения… …   Экономический словарь

  • Grasim Industries — Limited is a Aditya Birla Group company that started in 1948 and which started as a textile manufacturer. Since then Grasim has successfully diversified into Viscose Staple Fiber (VSF), cement, sponge iron and chemicals [… …   Wikipedia

  • Eurofighter Typhoon — infobox Aircraft name = Typhoon type = Multirole fighter manufacturer = Eurofighter GmbH caption = A Eurofighter Typhoon F2 of the RAF designer = first flight = 27 March 1994 introduced = 2003 retired = number built = 146 (as of May 2008) [ [http …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”