StudentShare solutions
Triangle menu

What was the Multi-Fibre Agreement China and the Multi-Fibre Agreement - Essay Example

Nobody downloaded yet

Extract of sample
What was the Multi-Fibre Agreement China and the Multi-Fibre Agreement

In 1962, a Long Term Agreement (LTA) regarding international trade in cotton textiles was signed. It replaced the one-year Short Term Agreement that existed at the time. LTA underwent several renewals and was subsequently replaced by the Multi-Fibre Agreement (MFA) in 1974, which was expanded to cover exports of synthetic fibres and woolen products, besides cotton.

MFA came into force to allocate export quotas to the low cost developing countries, limiting the amount of imports to countries whose domestic industries were facing serious challenge from rapidly increasing imports. It sought to expand trade, reduce barriers to trade and progressively liberalise world trade.

The MFA regime existed for 25 years, until 1994 when the Uruguay Round of Multilateral Trade Negotiations resulted in the Agreement on Textiles and Clothing (ATC). The ATC sought to phase out all quota restrictions in four phases spread over a period of 10 years. The first three partial phase-outs were in January 1995, January 1998 and January 2002. The final one is due on January 01, 2005.

This came into force along with the WTO framework for multilateral trade in 1995: stipulated that the quota system for textile exports and imports under the Multi-Fibres Agreement (MFA) was finally phased out on January 1, 2005. More specifically, in terms of the agreement, the transition period, which began in 1995, would be operative for ten years and, by the end of that time, all textiles and apparel articles will have to be brought under the GATT discipline, subject to the same rules, as are the products of other sectors.

China and the Multi-Fibre Agreement: -
China was a participant country of the MFA, the implications of the end of the MFA regime on world trade generally in textiles and apparel, also the projected impact on the Chinese textile and apparel industry. To set the perspective, the MFA was negotiated under GATT 1947 and was functional from 1974 to 1994. In the eyes of the USITC, the agreement was intended to deal with domestic market disruption in importing countries: that is, developed economies - while allowing the exporting, or developing, nations to expand their textile and apparel trade as much as possible. This was achieved by the MFA through the instrument of negotiating bilateral agreements on export quotas. Cotton fibre is considered as an agricultural product and therefore covered by the WTO agreement on agriculture. All other cotton-based products, such as yarn, weaves and other textile products were subject, until January 2005 to the Multi-fibres Agreement. That agreement which came into force in 1974 was intended to protect the textile industries of developed countries from the growing exports of developing countries by way of a system of quotas.


The European Union's Cotton Textile Policy: -
The EU cotton regime was put in place in 1981 when Greece joined the European Economic Community. The accession of Spain and Portugal in 1986 enlarged the number of countries covered by the WTO agreement on cotton.

Aid was paid to cotton ginners on condition that cotton producers benefited from a minimum price per tone of cottonseeds. This system made it possible to protect producers from variations in world prices while enabling companies to sell cotton fiber at the international price. The aid per tone of cottonseeds was equal to the difference between the guide price (fixed every year) and the world market price. The payment of aid was limited to a maximum guaranteed quantity (MGQ) set annually.

From 1987, a guide price cut-off system was introduced to protect growers from the risk of very big falls in the minimum price. The original cut-off was 15% but ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“What was the Multi-Fibre Agreement China and the Multi-Fibre Agreement Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/294459-what-was-the-multi-fibre-agreement
(What Was the Multi-Fibre Agreement China and the Multi-Fibre Agreement Essay)
https://studentshare.net/miscellaneous/294459-what-was-the-multi-fibre-agreement.
“What Was the Multi-Fibre Agreement China and the Multi-Fibre Agreement Essay”, n.d. https://studentshare.net/miscellaneous/294459-what-was-the-multi-fibre-agreement.
  • Cited: 0 times

Summary

Exports of textiles and clothing from developing countries have long faced restrictive blocks to their exports called quotas. Brought in force as a temporary relief measure in favor of the domestic textile manufacturers in the developed countries, it has been in force for 40 years now…
What was the Multi-Fibre Agreement China and the Multi-Fibre Agreement
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"What was the Multi-Fibre Agreement China and the Multi-Fibre Agreement"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Fibre Reinforced Plastics
Fibre Reinforced Plastics are gaining in prominence due to their increased scope of applications and also due to their strength capabilities. These are replacing areas which were earlier dominated by carbon steel materials. A Fibre Reinforced Plastic is considered a composite material made up of a combination of resins, fibre material and core.
12 pages (3000 words) Essay
Fibre Optics
Basically, fiber optics refer to the cables or lines which contain optically pure glass used to transmit digital information signals. The bedrock of these cables is formed by this optically pure glass which is more or less as thin as a human hair but has astounding ability to carry digital information over far across corners of the world.
6 pages (1500 words) Essay
Fibre Optics
Fibre optics however is being utilized since more than a hundred years. Optical fibre is a model that has evolved greatly over time. From guided transmission lights experiments to lasers and light emitting diodes (LED), and to dense wavelength-division multiplexing (DWDM), the area under which optical fibre can be used has expanded.
6 pages (1500 words) Essay
Economic Impacts of the Multi Fibre Agreement expiration in the EU Countries
The essay primarily focuses on the identification of the economic consequences of the end of the MFA among developing countries and within the EU. It is shown, that the MFA expiration, did not help all the developing countries to raise their textile imports and did not prevent some developed countries from suffering of invasion of textile.
11 pages (2750 words) Essay
Tenancy Agreement
Under the tenancy agreement, both the tenant and the owner are assigned certain rights and obligations, as par the law, which are binding on both and are at least equal to their statuary rights. If less, that clause of the agreement cannot be implied. There are two parts to the agreement: the express terms/clauses and the implied terms/clauses.
11 pages (2750 words) Essay
Cessation of Multi-Fibre Agreement Impact on Free Trade
There are also arguments that the quantitative restrictions were the one single factor that has diffused the development of the industry in most of the developing countries in the recent past. The regulation of the quantitative restrictions was institutionalized through the entering of a Multi-Fibre Agreement (MFA) during the 1970s and the agreement continued to control the international trading in textile & clothing industry for almost 25 years.
8 pages (2000 words) Essay
Multi-Fibre Agreement Impact on the European Economy
There are also arguments that the quantitative restrictions were the one single factor that has diffused the development of the industry in most of the developing countries in the recent past. The regulation of the quantitative restrictions was institutionalized through the entering of a Multi-Fibre Agreement (MFA) during the 1970s and the agreement continued to control the international trading in textile & clothing industry for almost 25 years.
10 pages (2500 words) Essay
Free Trade Agreement (FTAs) in China
Currently, China is analyzing, negotiating, or applying Free Trade Agreements or FTA with over 20 nations and regions. This significant progress in China’s
14 pages (3500 words) Essay
Fibre Optics
One of the modern and commonly used applications of fibre optics is high resolution visuals (HDTV) which has enabled us to view broadcasts at 1080p screen resolution
6 pages (1500 words) Essay
Optical Fibre Communications
This report details the fundamental principles concerned with the construction of a basic optical fibre communications system in the laboratory. Fill in the spaces below, next to 2.1-2.3 and 3.1-3.4, to complete the Contents section. Every title you insert must have an
7 pages (1750 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic What was the Multi-Fibre Agreement China and the Multi-Fibre Agreement for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us