Trade Restrictions and Hong Kong's Textile and Clothing Industry

Most fabrics and clothing worldwide were exported from China or Japan, higher up every(prenominal) told Hong Kong is one of the most important centres. Quota restrictions regulated the international mountain since decades. In January 2005, after the complete phase-out of the old quota restriction, price pretermit out was expected. 1.1 long-term order Regarding International Trade in Cot-ton Textiles LTA In 1962, the Long-Term Arrangement Regarding International Trade in Cotton Textiles was sign(a) by the US, after one year having a short-run market sharing arrangement. The LTA followed the Voluntary Export suppress (VER), which curb the export of like fiber tex-tiles from Japan to the US for five geezerhood. Consequently, some other Asian countries exported cotton textiles to the US. As LTA defined cotton as a material with 50% or more cotton by weight, exporters started to mix cotton with other fibres and consequently increase their exports. As a result, the text ile industry of the US demanded stricter arrangements to cheer their indus-tries. 1.2 The Multifibre Arrangement (MFA) Bilateral agreements were signed, mainly between the US and Japan, Hong Kong or Korea, reason by negotiating the Multifibre Arrangement in 1974 concerning the export of tex-tiles made of cotton, woolen and man-made fibre. The MFA was quantity oriented, it required a quota growth esteem of 6% per year.

In many cases, the expectations were not fulfilled. 20 years after the introduction, MFA was certain by 44 members, most of them were GATT mem-bers. The oecumenical apprehension on Tariffs and Trade helps to equalize the trade all over t! he world, except since the beginning of MFA it was in conflict with the GATT rules concerning tariffs and quadripartite equalization. 1.3 WTO Agreement on Textiles and Clothing ATC After the last year of MFA in 1994, the WTO Agreement on Textiles and Clothing was signed and contained decisions of... If you want to need a full essay, order it on our website: BestEssayCheap.com

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