The MFA Paradox: More Protection and More Trade?
AbstractThe textile industry's political power stemmed from its importance in southern states plus the power of the Southern delegation in the U.S. Congress in the 1960s. The strongest resistance to the industry's pressure for protection came from the foreign policy interests of the Executive branch. A constellation of influences explains why negotiated, or voluntary export restraints (VERs), sanctioned by international agreements (the Multi-Fiber Arrangement) was the form protection took. First, the Japanese industry, at the time the world's leading textile exporter, already in the 1930s had exhibited a willingness to accept negotiated agreements to trade disputes. Second, the U.S. Executive, having been a leader in establishing the GATT system to control the sort of unilateral restrictive actions that contributed to the 1930s depression, was reluctant to take unilateral action. Third, the arrangement was acceptable to the U.S. industry because, through their particular power over agricultural legislation, the Southern delegation won passage, as amendments to agriculture bills, of legislation to enforce these 'voluntary' restraints at the U.S. border. But because enforcement remained with the Executive branch, it tended to follow the letter of the agreements, hence exports could continue to expand by shifting to new product varieties and to new supplier countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4751.
Date of creation: May 1994
Date of revision:
Publication status: published as J. Michael Finger, Ann Harrison. "The MFA Paradox: More Protection and More Trade? ," in Anne O. Krueger, ed., "The Political Economy of American Trade Policy" University of Chicago Press (1996)
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- F1 - International Economics - - Trade
- L6 - Industrial Organization - - Industry Studies: Manufacturing
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Finger, J. Michael & Schuknecht, Ludger, 1999. "Market access advances and retreats : the Uruguay Round and beyond," Policy Research Working Paper Series 2232, The World Bank.
- Costinot, Arnaud, 2008.
"Jobs, Jobs, Jobs: A "New" Perspective on Protectionism,"
University of California at San Diego, Economics Working Paper Series
qt1cp9749b, Department of Economics, UC San Diego.
- Arnaud Costinot, 2009. "Jobs, Jobs, Jobs: A "New" Perspective on Protectionism," Journal of the European Economic Association, MIT Press, vol. 7(5), pages 1011-1041, 09.
- Theo S Eicher & Thomas Osang, 2000.
"Politics and Trade Policy: An Empirical Investigation","
0004, University of Washington, Department of Economics.
- Theo Eicher & Thomas Osang, 2001. "Politics and Trade Policy: An Empirical Investigation," CESifo Working Paper Series 410, CESifo Group Munich.
- Theo S Eicher & Thomas Osang, 2000. "Politics and Trade Policy: An Empirical Investigation"," Discussion Papers in Economics at the University of Washington 0004, Department of Economics at the University of Washington.
- Scott Bradford, 2000. "Rents, Votes, and Protection: Explaining the Structure of Trade Barriers Across Industries," Econometric Society World Congress 2000 Contributed Papers 1717, Econometric Society.
- Giovanni Maggi & Andres Rodriguez-Clare, 1998.
"Import Peneteration and the Politics of Trade Protection,"
NBER Working Papers
6711, National Bureau of Economic Research, Inc.
- Maggi, Giovanni & Rodriguez-Clare, Andres, 2000. "Import penetration and the politics of trade protection," Journal of International Economics, Elsevier, vol. 51(2), pages 287-304, August.
- Hudson, Darren & Ethridge, Don E. & Mutuc, Maria Erlinda M., 2011.
"Lessons Learned from the Phase-out of the MFA: Moving from Managed Distortion to Managed Distortion,"
eJADE: electronic Journal of Agricultural and Development Economics,
Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 12(1).
- Hudson, Darren & Ethridge, Don E. & Mutuc, Maria Erlinda M., 2010. "LESSONS LEARNED FROM THE PHASE-OUT OF THE MFAs: MOVING FROM MANAGED DISTORTION TO MANAGED DISTORTION," Conference Papers 96674, Texas Tech University, Department of Agricultural and Applied Economics.
- Costenot, Arnaud, 2006. "Jobs, Jobs, Jobs: A New Perspective on Protectionism," University of California at San Diego, Economics Working Paper Series qt1bt8n04n, Department of Economics, UC San Diego.
- Grether, Jean-Marie & de Melo, Jaime & Olarreaga, Marcelo, 2001.
"Who determines Mexican trade policy?,"
Journal of Development Economics,
Elsevier, vol. 64(2), pages 343-370, April.
- Grether, Jean-Marie & de Melo, Jaime & Olarreaga, Marcelo, 1999. "Who determines Mexican trade policy?," Policy Research Working Paper Series 2187, The World Bank.
- de Melo, Jaime & Grether, Jean-Marie & Olarreaga, Marcelo, 1999. "Who Determines Mexican Trade Policy?," CEPR Discussion Papers 2176, C.E.P.R. Discussion Papers.
- Madani, Dorsati & Olarreaga, Marcelo, 2002. "Politically optimal tariffs : an application to Egypt," Policy Research Working Paper Series 2882, The World Bank.
- Theo Eicher & Thomas Osang, 2002. "Protection for Sale: An Empirical Investigation: Comment," American Economic Review, American Economic Association, vol. 92(5), pages 1702-1710, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.