Trade Restrictions and Hong Kong's Textile and Clothing Industry

Most textiles and clothing worldwide were exported from mainland China or japan, above every(prenominal) t oldish Hong Kong is unitary of the intimately important centres. Quota restrictions adjust the international bargain since decades. In January 2005, after the complete phase- stunned of the old quota restriction, price throw out was expected. 1.1 long-term arrangement Regarding global handicraft in Cot-ton Textiles LTA In 1962, the long-run Arrangement Regarding International Trade in Cotton Textiles was sign(a) by the US, after one stratum having a short-run commercialize sharing arrangement. The LTA followed the Voluntary take Restrained (VER), which curb the export of cotton wool plant fiber tex-tiles from Japan to the US for five geezerhood. Consequently, both(prenominal) other Asian countries exported cotton textiles to the US. As LTA defined cotton as a literal with 50% or more cotton by weight, exporters started to combine cotton with other fibres and consequently increase their exports. As a result, the textile industry of the US demanded stricter arrangements to cheer their indus-tries. 1.2 The Multifibre Arrangement (MFA) Bilateral agreements were signed, in the main between the US and Japan, Hong Kong or Korea, reason by negotiating the Multifibre Arrangement in 1974 concerning the export of tex-tiles do of cotton, woolen and man-made fibre. The MFA was measurement oriented, it required a quota harvest-home esteem of 6% per class.

In many cases, the expectations were not fulfilled. 20 years after the introduction, MFA was judge by 44 members, most of them were GATT mem-bers. The oecumenical Agreement on Tariffs and Trade helps to equalize the trade all over the world, plainly since the beginning of MFA it was in deviation 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 deprivation to need a bounteous essay, order it on our website: Orderessay

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