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Lessons Learned from the Phase-out of the MFA: Moving from Managed Distortion to Managed Distortion

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  • Hudson, Darren
  • Ethridge, Don E.
  • Mutuc, Maria Erlinda M.

Abstract

While the elimination of the Multifibre Arrangement (MFA) was presumed to be a net global benefit because it represented an elimination of a distortionary set of trade agreements, it was based on the assumption that the underlying global trading regime was based on free trade principles. However, due to the trading pattern that has emerged after the MFA and its unintended consequences – with production infrastructure and trading rules based on distortionary incentives so entrenched into the system – the global trading regime after the elimination of quotas is still far short of free.

Suggested Citation

  • 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," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 12(01), pages 1-15, May.
    • Handle: RePEc:ags:ecjilt:104063
    DOI: 10.22004/ag.econ.104063
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    References listed on IDEAS

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    1. Juliette Milgram Baleix, 2005. "Quotas on Clothing Imports: Impact and Determinants of EU Trade Policy," Review of International Economics, Wiley Blackwell, vol. 13(3), pages 445-460, August.
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