Abstract

The caselet discuss the scenario in the global textile industry in the pre- and post-Multi Fiber Agreement (MFA) period. The post quota regime and its impact on various countries and the benefits that have accrued to the Indian textile industry in the post quota textile regime are also covered. The caselet evaluates the ability of Indian textile exporters to meet the challenges of the post quota scenario

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Implications of Multi Fiber Agreement (MFA)
• Features of Agreement on Textiles and Clothing (ATC)
• Where do Indian garment exporters stand after elimination of MFA quotas?
• and How would the Indian Textile Industry fare under new textiles policy?

Keywords

General Agreement on Tariffs and Trade (GATT), Multi Fiber Agreement (MFA), Quotas, Tariffs, Agreement on Textiles and Clothing (ATC), Caribbean Basin Initiative (CBI), NAFTA, Capital investment, Modernization, automation