Trade pact expiry weaves worry for global textile industry

The expiration of the Multi-Fibre Agreement (MFA) quotas has shifted the global textile trade from a protected regime to a competitive market, leading to fears that China and India will dominate US and EU markets. African nations, despite preferential access through AGOA and EBA, face significant market share declines and job losses. The document argues that African countries must improve efficiency, diversify economies, and leverage South-South cooperation to survive the transition.

• The Multi-Fibre Agreement (MFA), adopted in 1974, allowed North American and European producers to restrict import quantities of textiles and clothing to protect their domestic industries from low-cost manufacturers in developing countries.
• The removal of MFA quotas is expected to lead to market dominance by China and India. A WTO study from August 2004 indicated that China alone could capture approximately 50% of the US market share following the removal of quotas.
• African textile industries have already suffered significant losses, with over 80,000 jobs lost since 1995 and mill closures occurring in Kenya, Lesotho, and Swaziland.
• Despite preferential trade programs like the African Growth and Opportunity Act (AGOA) and the Everything But Arms (EBA) initiative, the WTO estimates that African countries could see their market share decline by nearly 70% after the MFA ends.
• China's competitive advantage in the textile sector is attributed not only to cheap labour but to superior management, technical knowledge, productivity, and the ability to respond quickly to fashion trends.
• To remain competitive, African nations are encouraged to use WTO anti-dumping measures, optimize AGOA benefits, and expand trade with China, India, and Brazil through South-South cooperation.

APA

South African Institute of International Affairs (2005). Trade pact expiry weaves worry for global textile industry. https://saiia.org.za/research/trade-pact-expiry-weaves-worry-for-global-textile-industry/

Chicago

South African Institute of International Affairs. Trade pact expiry weaves worry for global textile industry. 2005. https://saiia.org.za/research/trade-pact-expiry-weaves-worry-for-global-textile-industry/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Trade pact expiry weaves worry for global textile industry |date=20 September 2005 |url=https://saiia.org.za/research/trade-pact-expiry-weaves-worry-for-global-textile-industry/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2005trade, author = {{South African Institute of International Affairs}}, title = {{Trade pact expiry weaves worry for global textile industry}}, institution = {South African Institute of International Affairs}, year = {2005}, month = sep, url = {https://saiia.org.za/research/trade-pact-expiry-weaves-worry-for-global-textile-industry/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }