Abstract

The caselet takes a detailed look at the situation in the textile market after the phasing out of the Multi Fiber Agreement (MFA). It explores the conditions that are favorable for China to dominate textile exports to the US and focuses on the actions of the US to counter the domination of China in the textile industry and protect domestic industries from cheap Chinese imports. It also takes a glance at China’s act of imposing export tariffs to ease out the fears of other competing textile exporting countries.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Aftermath of MFA on textile exports and imports
• Benefits to developing countries like China after the phase-out of MFA
• Chances of China dominating the US textile market
• and Measures taken by China to alleviate fears in importing countries.

Keywords

Multi Fibre Agreement, The National Council of Textile Organizations (NCTO), World Trade Organization(WTO), product-specific safeguard, US Department of Commerce, US Association of Importers of Textiles and Apparel, Istanbul Declaration, North American Free Trade Agreement (NAFTA), Caribbean Basin Trade Partnership Act (CBTPA), Euro Cotton