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2005•Foreign Trade ReviewRequires access

International Trade in Textiles and Clothing

K. Rangarajan

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Abstract

The Multi-Fibre Arrangement (MFA) and other earlier agreements through quantitative restrictions governed the international trade in textiles and clothing for more than three decades now. One of the major milestones of the Uruguay Round was the Agreement on Textiles and Clothing (ATC) which provided for the dismantling of these restrictions. Under the ATC, the MFA restrictions were to be phased out over a “ten-year” period and were scheduled to end by 2005. The world trade in textiles and clothing has assumed alarming proportions in 2005. This paper examines the post-MFA challenges for the textiles and clothing industry in general and India in particular. As textiles and clothing industry has been an important source of economic growth in South Asia, this paper focuses on the strategies for India in facing the challenges due to full MFA phase-out from 1st January 2005.

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What this paper is about

The Multi-Fibre Arrangement (MFA) and other earlier agreements through quantitative restrictions governed the international trade in textiles and clothing for more than three decades now. One of the major milestones of the Uruguay Round was the Agreement on Textiles and Clothing (ATC) which provided for the dismantling of these restrictions. Under the ATC, the MFA restrictions were to be phased out over a “ten-year” period and were scheduled to end by 2005. The world trade in textiles and clothing has assumed alarming proportions in 2005. This paper examines the post-MFA challenges for the textiles and clothing industry in general and India in particular. As textiles and clothing industry has been an important source of economic growth in South Asia, this paper focuses on the strategies for India in facing the challenges due to full MFA phase-out from 1st January 2005.

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Available abstract

The Multi-Fibre Arrangement (MFA) and other earlier agreements through quantitative restrictions governed the international trade in textiles and clothing for more than three decades now. One of the major milestones of the Uruguay Round was the Agreement on Textiles and Clothing (ATC) which provided for the dismantling of these restrictions. Under the ATC, the MFA restrictions were to be phased out over a “ten-year” period and were scheduled to end by 2005. The world trade in textiles and clothing has assumed alarming proportions in 2005. This paper examines the post-MFA challenges for the textiles and clothing industry in general and India in particular. As textiles and clothing industry has been an important source of economic growth in South Asia, this paper focuses on the strategies for India in facing the challenges due to full MFA phase-out from 1st January 2005.

Key concepts: Clothing, Clothing industry, International trade, Business, Commerce, Political science, Law

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