Economic Impacts of the Multi Fibre Agreement expiration in the EU Essay

Economic Impacts of the Multi Fibre Agreement expiration in the EU Countries - Essay ExampleThe undertake focuses on the economic side of the MFA expiration, while examining the importance of international trade and the use of protectionist policies in a globalized world. The concept of aggregate demand and supply is used to measure the impact of the changes on products and factors in the cloth market. The essay also considers European protectionist measures that can be taken in the nearest future.The essay presents contrary cases, where other forms of protectionism have been created in developed countries especially in the European Union and the gap amid beneficiary and non beneficiary create countries of the opening of the international stuff market.The WTO admitted that the MFA was a special regime foreign the GATT rules and that WTO members have committed to remove those quotas by 1st January 2005. Nevertheless, the MFA was not negative for all countries. The US, for examp le, imposed no restrictions on imports from the poorest countries like Bangladesh, benefiting to a massive expansion of the textile industry there.Since the end of the quotas, the gap amongst developed and underdeveloped countries is not very clear. When some could believe that the dismantling of the MFA could have been a imprint and a real chance for Southern countries, it appears that the situation is much more complex.There is one chief(prenominal) reason for the difficulties facing the textile market within growth countries competition. Each of developing countries wants to be bankrupt of this profitable business.... ist policies and we will use the concept of aggregate demand and supply to measure the impact of the changes on products and factors in the textile market.I. The consequences of the end of the MFA.1. Among developing countries.Since the end of the quotas, the gap between developed and developing countries is not very clear. When some could believe that the di smantling of the MFA could have been a relief and a real opportunity for Southern countries, it appears that the situation is much more complex.There is one main reason for the difficulties facing the textile market within developing countries competition. As the international market is now wide open, each developing countries wants to be part of this profitable business. However, not all of them can compete with giants like chinaware. According to apublication from the OECD A New World Map in Textiles and Clothing when the MFA was still in place, smaller developing countries took payoff of the quotas because this system penalised the more militant suppliers. When the quotas from a country like China was reached, importers turned to less competitive suppliers located in countries that had spare export quotas and whose simply advantage was low wage. Today, the less competitive developing countries re not called as back up because countries willing to import textile can only be sup plied by one and only exporter, the most competitive China. As we stated before, the main fruit here is competition. What separates China from other developing countries id not only the competitive advantages of low wages. In China Shows the Way in a Quota-Free Market, Linda Lim presents six competitive advantages that China has over the other developing countriesFirst, Chinese workers are much more productive, probably