By Economic and Social Commission for Asia and the Pacific
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Additional info for Asia-Pacific Trade and Investment Review, Vol. 3 No. 1 (June 2007)
These and other elements of the phase effectively delayed the termination of MFA until the end of January 2005. The MFA quota regime had many unintended and trade-distorting effects. A byproduct of MFA was quota-hopping foreign investment. This phenomenon involves “moving production away from newly constrained to temporarily unconstrained countries and inefficiently proliferating clothing industries in more countries than would have been the case in the absence of the MFA” (Whalley, 2006). Quota-hopping foreign investment was heavily directed to export processing zones in many developing countries in South Asia, Africa and Latin America.
3. THE CHINA CONTAINMENT AGREEMENTS AND THEIR EVOLUTION (a) The China containment agreements and the accession of China to WTO The new restraints on textile and apparel exports against China, which we term the China containment agreements, stem from the terms of the accession of China to WTO in 2001. Almost 20 years had elapsed from the date that China was first granted observer status under GATT; no other country acceding to WTO had been asked to make as many concessions as China had as the price it had to pay for accession.
2 (Chiba, Japan, Institute of Developing Economies). Global Agriculture Information Network (GAIN) (2004). Bangladesh: Cotton and Products, Annual, 2004, GAIN Report No. BG4004, United States Department of Agriculture, Foreign Agricultural Service. Gereffi, Gary (1999). “International trade and industrial upgrading in the apparel commodity chain”, Journal of International Economics, vol. 48, No. 1, pp. 37-70. Gonzales, Aimee (2002). Sustainable Trade in Textiles and Clothing, dialogue report from the Expert Panel on Trade and Sustainable Development (Gland, Switzerland, World Wide Fund for Nature (formerly World Wildlife Fund)).