chapter6 (3) - One of the principles of General Agreement...

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One of the principles of General Agreement on Tariffs and Trade (GATT) was that countries should not use quotas to restrict imports. The MFA was a major exception to that which allowed the industrialized countries to restrict imports of textile and apparel products from the developing countries. The quotas were used to protect their own domestic firms producing those products. Organized under GATT, importing countries could join the MFA and arrange quotas bilaterally or unilaterally. While the amount of the quotas was occasionally revised upward, they did not keep up with the increasing ability of new supplying countries to sell. Under the Uruguay round of WTO, developing countries were able to negotiate an end to this system of import quotas. Given that China was a large supplier of textiles, the expiration of the MFA meant that China could export as much as it wanted – or so it thought. Some developing countries and large producers in importing countries were
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chapter6 (3) - One of the principles of General Agreement...

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