The End of Multi-Fiber Arrangement: Opportunities for China's Textile Industry



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Code : ITF0026

Year :
2005

Industry :Textails

Region : :Vatican

Teaching Note: Not Available

Structured Assignment : Not Available

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Abstract: The global textile and apparel industry had been governed by quotas under the Multi-Fiber Arrangement (MFA) since 1974. The developed countries laid certain restrictions on the number of items that could be exported by low cost producers, such as China and India, so as to protect their local textile industry. After the expiry of MFA on January 1 st 2005, China was expected to be one of the biggest winners due to its competitive textile industry. Chinese textile exports had experienced tremendous growth since its entry into the World Trade Organisation in 2002. But many competitors and importing countries, including the US textile industry, voiced concerns that China was set to dominate and destroy the textile industry through unfair trade practices including currency manipulation and subsidising its textile industry.

Pedagogical Objectives:

  • To discuss the growth of Chinese textile industry after the expiry of MFA.

    Keywords
    Global textile and apparel industry, Government and Business Environment Case Study,Multi-Fiber Arrangement (MFA), China’,s textile and apparel exports, World Trade Organisation (WTO), Protectionist measures and quotas, Chinese textile and apparel industry, Quantitative export restrictions, Business environment, Agreement of Textile and Clothing (ATC), Cheap labour and raw material costs, Oversupply and market disruption, Global textile and apparel market, National Council for Textile Organisations, US International Trade Commission, China Chamber of Commerce for the Import and Export of Textiles (CCCT)

    Contents :
    » MULTI-FIBER ARRANGEMENT (MFA)
    » CHINA’S TEXTILE AND APPAREL INDUSTRY
    » THE END OFMFA:OPPORTUNITIES AND CHALLENGES FOR CHINA


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