End of MFA: Impact on Developing Countries
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Code : ITF0024
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Region : :Null |
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Impact on Developing Countries The US, with over 40 suppliers,was the single largest textilemarket in theworld.7 As of 2004, five countries, inclusive of China and India, accounted for almost 61%of its total imports and ten countries accounted for about 85%of its textile imports.8 AWTO study, released in September 2004, estimated that after the end of theMFA, China, along with India, could account for asmuch as 80%of the global textile exports.9 Studies conducted by the US Department of Commerce indicated that in 2005-06major buyerswould reduce the number of countries they sourced fromby half and by an additional third by 2010... Concerns Textile industries in both developed and developing countries feared the Chinese domination of the global textile industry. These industries called for protectionistmeasures to be placed against Chinese exports. The US textile industry asked the government to protect the domestic industry fromtheChinese onslaught.RobertDuPress, President ofNational Council ofTextileOrganizations35 , stated, “We conducted a study:We are talking about 600,000 US jobs that could be lost in the textile, apparel, fiber related industries in the next few years. China could wipe out entire segments of the US industry... Multi-Fibre Agreement (MFA) Regarding International Trade in Textiles An internationally agreed derogation fromGATT rules thatwas in effect from1974 until the end of theUruguayRound in 1994.TheMFAsucceeded the Long-TermAgreement on International Trade in Cotton Textiles (LTA),which had been in effect since 1962. The objective of these agreementswas to reconcile the interests of textile-exporting and textile-importing countries by permitting an orderly expansion of tradewhile avoidingmarket disruption... |
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