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The Agreement on Textiles and Clothing: Is It a WTO Failure?

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  • Malaga, Jaime E.
  • Mohanty, Samarendu

Abstract

The historic GATT-Uruguay Round Agreement was signed in April 1994 after years of difficult negotiations. Although the textile and clothing sector was not included, a separate agreement, the Agreement on Textiles and Clothing (ATC) was also signed, with the specific purpose of dismantling the complex quota system in place and gradually incorporating the sector into the rules and disciplines of GATT-UR over a period of ten years. On the verge of the established deadline, the liberalization results achieved seem disappointing for most textile exporting countries. These results have implications for the new round of WTO negotiations. What went wrong? Is anyone to blame? This article analyzes the ATC rules and discusses conflicting interpretations of the results so far, as well as expectations for 2005.

Suggested Citation

  • Malaga, Jaime E. & Mohanty, Samarendu, 2003. "The Agreement on Textiles and Clothing: Is It a WTO Failure?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 4(1), pages 1-11.
    • Handle: RePEc:ags:ecjilt:23819
    DOI: 10.22004/ag.econ.23819
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    References listed on IDEAS

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    1. Chris Milner & Robert Read (ed.), 2002. "Trade Liberalization, Competition and the WTO," Books, Edward Elgar Publishing, number 2439.
    2. World Bank, 2002. "Global Economic Prospects and the Developing Countries 2002," World Bank Publications - Books, The World Bank Group, number 14050, December.
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    Cited by:

    1. Lopez, Jose Enrique & Malaga, Jaime E., 2004. "The Uncertain Future Of The Mexican Market For U.S. Cotton: Impact Of The Elimination Of Textile And Clothing Quotas," Western Economics Forum, Western Agricultural Economics Association, vol. 3(2), pages 1-5, December.
    2. Mustafizur Rahman & Asif Anwar, 2006. "Bangladesh Apparels Export to the US Market: An Examination of Her Competitiveness vis-à-vis China," CPD Working Paper 62, Centre for Policy Dialogue (CPD).
    3. Unknown, 2005. "Articles from Volume 1, Issue 1, 2005, Journal of International Agricultural Trade and Development," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 1(1), pages 1-95.
    4. Mustafizur Rahman & Asif Anwar, 2006. "Bangladesh Apparels Export to the US Market - An Examination of Her Competitiveness vis-à-vis China," Trade Working Papers 22295, East Asian Bureau of Economic Research.

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