The removal of the Multi-fiber Agreement was not a positive thing because it would create monopolized by a few countries such as China. As the quotas phase-out draws to a close, it is evident in this sector has been compromised by the use of trade distorting practices in a few dominant countries. The phase-out of textile was intended to liberalized trade for all nations, not to ensure domination of world trade in textiles and clothing by countries that use unfair trade practices. The creation of a monopoly position by a very few countries will be disastorous to the health and well being of the many developing world economies that are dependent of this vital export sector. Although from the statistic for the export figures for the first year since quotas are lifted tell a brighter story. Garment exports form Bangladesh grew by half of billion dollars, with most of the increased sales in the US market. The mass layoffs haven’t materialized. The principal reason Bangladesh didn’t lose out to China as everybody has predicted is because the labor in Bangladesh is cheaper than anywhere in the world. But it was only a matter of time before the producers to move to China textile
1. I think we should lobbying WTO to arrange agreement about to prevent the monopolized trade by a few countries. The other thing that we should look after is to improve the quality of our textile. We should make a proposal to IMF to make a loan program to the countries that may suffer economic turmoil due to trade liberalization such as the removal of textile quotas.
2. Yes, China was right to place a tariff on exports of textiles from China. Because this move may placate US producers and reduce the prospect of potentially damaging trade dispute. This placed tariff on textiles and garment trades to ensure that no single country dominated the market so it would be good for the world economy. Because the price would almost the same as other countries.
3. The agreement served the US...