Problems in the Textile Trade

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Written by:

Herman B


Date added:

October 21, 2016








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3 / 807


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245 times


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The MFA provided the industrialized countries the ability to limit imports from developing countries. These restrictions provided protection to domestic textile producers but allowed them to give preference to particular partner countries. The ATC favors the developing countries allowing them access to markets of industrialized countries that were previously protected...
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The elimination of the MFA will cause a more open market and the industry is likely to be located in smaller number of locations providing lower costs. This will likely cause enormous changes throughout most aspects of the industry. To be successful there needs to be a fair and balanced implementation of the ATC with provisions for compensation for job displacement and for the affected producers in the poor countries...
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