The effects of MFA quota elimination on Indian fibre markets (original) (raw)
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The Multi-fibre Arrangement (MFA) (Note 1) in global trade in apparels and textiles was phased out in December 2004. South Asian countries major concern was to prevent large-scale job losses due to liberalization and globalization. It was apprehended that the RMG sector of smaller countries especially Bangladesh will be adversely affected by losing a huge number of jobs, will face high competition from its low-cost competitor countries and will experience negative impact due to its high dependence on the United States and the European Union markets for its RMG products. Despite the concern and fear of negative impact on in the aftermath of quota removal of RMG sector in Bangladesh appears with positive trends along with the substantial increasing rate of export amount, the number of jobs and industries and GDP's growth. In 2010, the sector keeps around 20 percent GDP growth of the country.