What Is Multi Fiber Agreement

The Multi Fiber Agreement, also known as the MFA, was a trade agreement that governed the global textile and clothing industry for over 30 years. The agreement was established in 1974 and expired in 2005.

The purpose of the MFA was to regulate the flow of textiles and clothing between developed and developing countries. It was aimed at protecting the economies of developed countries that had well-established textile and clothing industries from being undermined by cheap imports from developing countries.

Under the agreement, quotas were established for the import of textile and clothing products from developing countries into developed countries. The quotas were set based on the export capabilities of each country, and each country was given a certain amount of quota that they could export to developed countries.

The MFA was a controversial agreement, with critics arguing that it was protectionist and hindered the economic development of developing countries. Supporters of the agreement, on the other hand, argued that it was necessary to protect the economies of developed countries and prevent the loss of jobs in the textile and clothing industry.

In 1994, the World Trade Organization (WTO) was established and began negotiations to phase out the MFA. The agreement was finally abolished in 2005, and since then, the textile and clothing industry has become more integrated and globalized.

Today, the textile and clothing industry is a major contributor to the global economy, employing millions of people around the world. The phasing out of the MFA has allowed developing countries to expand their textile and clothing industries, and has led to increased competition and innovation in the industry.

In conclusion, the Multi Fiber Agreement was a trade agreement that governed the global textile and clothing industry for over 30 years. It was aimed at protecting the economies of developed countries from being undermined by cheap imports from developing countries. The agreement was phased out in 2005, and since then, the textile and clothing industry has become more integrated and globalized.


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