INTERNATIONAL TRADE LAW

PROJECT

AGREEMENT ON TEXTILE AND

CLOTHING

SUBMITTED BY AJITABH
ROLL NO -906
SUBMITTED TO DR. P.P RAO
FACULTY OF ITL
CHANAKYA NATIONAL LAW UNIVERSITY, PATNA

ABSTRACT
The Agreement on Textiles and Clothing (ATC) was negotiated in the Uruguay Round of Trade
Negotiations. It replaced the Arrangement Regarding International Trade in Textiles (MFA, or
Multi-Fibre Arrangement) of 20 December 1973. The ATC provided for all then-existing textile
and clothing trade restrictions to be notified and eliminated over a period of 10 years from the
date of entry into force of the WTO Agreement. The ATC also provided that the ATC itself would
be terminated at the beginning of the 12th year of the WTO, together with all of the remaining
restrictions within its scope. As this termination duly took place on 1 January 2005, the ATC is
no longer in effect. The Multi Fibre Arrangement (MFA) governed the world trade in textiles and
garments from 1974 through 2004, imposing quotas on the amount developing countries could
export to developed countries. It expired on 1 January 2005. 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 there in buildings such as Rana Plaza

RESEARCH METHODOLOGY
Aims and Objectives:
This research paper looks at the concept of WTO AGREEMENTS ON TEXTILE AND
CLOTHING, its various advantages and scopes.

Scope and Limitations:

Due to space constraints, the paper is limited to a brief discussion of the points set above.

Research Questions:
What are the advantages of WTO AGREEMENT ON TEXTILE AND CLOTHING?

HYPOTHESIS
The researcher hypotheses that the MEDIATION is the best form of ADR.

Method of Writing:
An archival method of writing has been followed in the paper. Analysis based on the presented
data has been attempted.

Sources of Data:
Secondary sources of data have been used while researching for the paper.

Style of Citation:
A uniform style of citation has been followed throughout the paper.

CHAPTERISATION
1. INTRODUCTION
2. BACKGROUND OF MULTI FIBRE AGREEMENT
3. MAJOR ELEMENTS OF THE AGREEMENT ON TEXTILE
AND CLOTHING
4. ADVANTAGES

5. CRITICAL ANALYSIS
6. CONCLUSION
BIBLIOGRAPHY