The global political economy of trade protectionism and by Tony Heron
By Tony Heron
1. creation 2. The Multifibre association three. The political financial system of alternate liberalization in textiles and garments four. The 'winners' and 'losers' of alternate liberalization in textiles and garments five. the european, China and textiles international relations lower than the WTO 6. The WTO contract on Textiles and garments and the Caribbean 'offshore' improvement version 7. The African development and chance Act and the politics of choice erosion within the WTO Doha 'Development' around eight. end
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By 1977, prior to the MFA renewal, the European Commission claimed that its member 30 The Multi Fibre Arrangement states had lost approximately 430,000 jobs in the T&C sector in the time in which the first MFA protocol had been in operation (De la Torre and Bacchetta 1980: 98). Another important factor which contributed to the hardening of the EEC position towards the MFA was the accession of Britain, Ireland and Denmark to the Community in 1973. The accession of the UK (where T&C was at that stage still the third largest source of manufacturing employment), in particular, but also Ireland (where T&C was the largest source of manufacturing employment), served to solidify the protectionist wing of the EEC led traditionally by France (Farrands 1979).
The failure of the LTA to anticipate the growth in non-traditional textiles during the 1960s prompted industry leaders and policy-makers in the USA and, initially to a much lesser extent, other importing countries to seek an extension of the textile agreement to deal with the rapid expansion in artificial and non-cotton textile imports. The outcome of these deliberations is discussed next. The Multi Fibre Arrangement Since the growth of non-cotton imports up until the early 1970s had been unevenly distributed across North America and Western Europe, there was little in the way of consensus regarding the need for an extension of the quota system to cover man-made fibres and wool-based products.
LTA (1962–1973) LTA establishes a framework designed to liberalize trade in T&C through ‘orderly’ expansion; many quotas abolished while new ones expected to grow at an annual rate of 5 per cent; Article 4 allows for the conclusion of less generous quotas provided that they are ‘not inconsistent’ with the basic objectives of the agreement. MFA I (1974–1977) MFA extends quota restrictions to cover synthetic and woollen as well as cotton fibres; minimum growth rates increased from 5 per cent to 6 per cent; definition of ‘market disruption’ made more precise; ‘swing’, ‘carry forward’ and ‘carry over’ provisions added to ensure that the MFA is more flexible than the LTA.