MFA and the Liberalization of Trade in Textiles & Cloth

Bounded by the Multi-Fiber Agreement since 1960s, trade in textiles cloth remains a special item that is excluded from the free trade framework under GATT/WTO, which distorts the efficient allocation of resources, impedes the economic and trade growth in developing countries who are major exporters in the line, reduces the welfare level of consumers in the developed world, and keeps us away from freer trading environment. Although MFA will be completely abolished before Jan. 1st, 2005, other barriers still exist. There is a long way to go and efforts from international organizations, governments and enterprises are urged.