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Multi Fibre Arrangement


The Multi Fibre Arrangement (MFA) governed the world trade in textiles and garments from 1974 through 2004, imposing on the amount developing countries could export to developed countries. It expired on 1 January 2005.

Since the (re)emergence of developing countries as a source of cotton textile production, after the Textile manufacture during the Industrial Revolution, such as India's Khadi production in the Swadeshi movement initiated by Mahatma Gandhi, cotton production from these countries steadily increased after colonial independence. A number of treaties concerning Short-Term Arrangements regarding International Trade in Cotton Textiles (Geneva, 21 July 1961); Long-Term Arrangement regarding International Trade in Cotton Textiles (Geneva, 9 February 1962 and 15 June 1970), and Arrangement regarding International Trade in Textiles (Geneva, 20 December 1973) attempted to address the issue of what seemed a natural dominance of developing world in cotton textile production at the time. Eventually, the Multi Fibre Agreement was established in 1974.

The MFA was introduced in 1974 as a short-term measure intended to allow developed countries to adjust to imports from the developing world. Developing countries and countries without a welfare state have an absolute advantage in textile production because it is labor-intensive and their poor social insurance systems allow them low labor costs. According to a World Bank/International Monetary Fund (IMF) study, the system has cost the developing world 27 million jobs and $40 billion a year in lost exports. Developing countries have resisted moves such as a social clause in tariff agreements, to link them to improvements in working conditions.

The Arrangement was not negative for all developing countries. For example, the European Union (EU) imposed no restrictions or duties on imports from the emerging countries, such as Bangladesh, leading to a massive expansion of the industry.


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