The textile trade sector faced decades of protectionist measures as major developed countries suspended the normal rules of free trade. From the early years of GATT, the textile industry struggled to compete with imports from Japan and developing nations. The sector witnessed a series of special agreements like MFA (1973-1994) and ATC (1995-2004), highlighting the challenges of trade liberalisation and the evolving WTO policiesโa crucial topic for students preparing for exams.
The sector remained under special trade restrictions for over three decades, reflecting the struggle between open market policies and protectionist pressures in the developed world.
The textile trade was governed by a series of agreements that gradually expanded coverage and restrictions, illustrating the complex evolution of protectionist trade policies.
The STA and LTA established early frameworks to limit textile exports, initially focusing on cotton products. They represented the first step in creating a structured yet restrictive trade environment.
The MFA significantly expanded restrictions beyond cotton to include wool and man-made fibres, reflecting the increasing complexity of protectionist strategies. Initially intended for four years, its continual extensions illustrated the reluctance of developed nations to liberalise trade.
The ATC marked the final phase of this restrictive textile regime, gradually incorporating additional fibres such as jute, silk blends, and eventually pure silk. Despite its introduction, the agreement maintained export limits and delayed the full transition to trade liberalisation.
The evolution of the textile trade regime from STA and LTA to MFA (1973-1994) and ATC (1995-2004) illustrates how protectionist pressures influenced global trade. It shows the challenges of reconciling free trade principles with domestic interests and the role of WTO policies in guiding gradual liberalisationโan important insight for students preparing for exams.
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