Uruguay Round Agreement On Textiles And Clothing

5) In order to facilitate the integration of the textile and clothing sector into the 1994 GATT, members should enable continuous and autonomous industrial adaptation and increased competition in their markets. Macro-financial assistance is a system of bilaterally negotiated agreements under a multilateral framework limiting exports of textiles and clothing from developing countries to participating industrialized countries. Macro-financial assistance should provide “temporary” protection to the textile and clothing industry in industrialized countries to enable them to adapt to foreign competition and allow exporters from developing countries to have “orderly” access to markets in industrialized countries. In practice, it has been semi-permanent in four successive phases: MFA I (1974-1977), MFA II (1978-81), MFA III (1982-86) and MFA IV (1986-July 1991 and renewed three times until December 1994). The AMF has more than 40 participants and covers 80% of the world`s textile and clothing exports with around 100 bilateral restriction agreements. The extent of coverage has varied in exports from developing countries, with the most severe restrictions on the most efficient producers. Bilateral restrictions on AMF quotas (based on estimated AMF price rates) are about 15-25% for textiles and 25-40% for clothing (Centre for Economic Policy Research, 1994). Over time, the AMF has become both more restrictive and more complex. 16. The flexibility provisions, i.e. transfer, which are transferred and transferred and apply to all restrictions maintained under this article, are in line with the restrictions in the bilateral amf agreements for the 12-month period prior to the ENTRY into force of the WTO agreement. The combined use of pivots, transfers and transfers should not be limited or maintained in quantity.

For efficient exporters in developing countries, macro-financial assistance has slowed growth in textile and clothing exports and has resulted in significant losses in potential export earnings. This loss is generally greater than the quota rents that developing country exporters have contracted under macro-financial assistance1. The effectiveness of the AMF`s restrictions can be questioned if it is shown that several exporters from developing countries have increased the value and market share of their textile and clothing exports to industrialized countries. It should be noted, however, that macro-financial assistance has limited potential imports into major industrial markets and that growth in textile and clothing exports from developing countries has been weaker as a result of the agreement (see Cline, 1990). 2. Members agree that the introduction of amendments, such as Z.B. changes in the practices, rules, procedures and categorizations of textile and clothing products, including changes related to the harmonized system, in the implementation or management of restrictions notified or applied under this agreement, should not disturb the balance of rights and obligations between the members concerned under this agreement; Affect a member`s access obstruct the full use of this access; or disrupt trade under this agreement.

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