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Multifibre Agreement - Case Study Example

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All countries in the world are dependent on trade and import and export of goods to fulfill the needs of their citizens. While one country might have a plentiful of one kind of resources, another country might be facing a shortage of the same, leading to the need for importing that particular good or service…
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Multifibre Agreement
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Multifibre Agreement

Download file to see previous pages... 1966: June
The United Kingdom implements a global quota scheme in violation of the LTA. (The LTA provides only for product-specific restraints.)
1967: April
Agreement is reached to extend the LTA for three years.
The United States negotiates VERs with Asian suppliers on wool and man-made fibres.
1970: October
Agreement is reached to extend the LTA for three years. (It was later extended an additional three months to fill the gap until the MFA came into effect.)
1973: December
It is agreed that the MFA will begin on January 1, 1974, and last for four years.
1977: July-December
The European Economic Community and the United States negotiate bilateral agreements with developing countries prior to agreeing to extension of the MFA.
1977: December
The MFA is extended for four years.
1981: December
The MFA is renewed for five years. The United States, under pressure from increased imports resulting from dollar appreciation, negotiates tough quotas.
1986: July
The MFA is extended for five years, to conclude with Uruguay Round.
1991: July
The MFA is extended pending the outcome of the Uruguay Round negotiations.
1993: December
The Uruguay Round (UR) draft final act provides for a 10-year phase-out of all MFA and other quotas on textiles in ATC. MFA extended until UR comes into force.
1995: January
1 1st ATC tranche liberalised by importing countries - 16% of 1990 import volume.
1998: January
1 2nd ATC tranche liberalized by importing countries - 17% of 1990 import volume.
2002: January
1 3rd ATC tranche liberalised by importing countries - 18% of 1990 import volume.
2005: January
1 4th ATC tranche liberalised by importing countries - 49% of...
The nineteenth century saw the beginning of the formation of unions, for the purpose of protecting the rights of the citizens. From then on, as each country gained freedom from colonial rule, it started to go in for organized employment and trade activities. There are unions and associations for employment, for domestic trade activities and international trade activities. To protect the rights of its people, some countries have agreed and signed pacts on the quantity of each commodity that can be imported or exported into a country.
Before we embark on a detailed analysis of the Multifibre agreement and its impact on international trade, let us have a look into the actions and agreements that were made before the Multifibre agreement came into force.
Source: Based on D. Spinanger, "Faking Liberalization and Finagling Protectionism: The ATC at Its Best", Background Paper for the WTO 2000 Negotiations: Mediterranean Interests and Perspectives, Cairo.
The textile and clothing industry is one which has constantly increasing trade flows all over the world. Globalization and liberalization had exposed the European Union industry to increased competition from a large number of low-labor cost countries (especially from Asia).This sector constitutes one of the most important sources of income and employment for various countries in Asia, esp. ...Download file to see next pagesRead More
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