Situational Analysis
Home | ABC | Situational Analysis | Calendar | UNIFEM | Forum | Database | Recommendations

The Multi-Fibre Agreement (MFA)

Under the Multi-Fibre Agreement (MFA), the phasing out of quota controls for textiles is back-loaded, with most of the changes due to occur in the last two years of the process, which has been scheduled over ten years. The changes due in the near future are relatively small. If the MFA is phased out as per plan (and this too depends entirely upon the success of the WTO enforcement mechanism that is yet to be tested), then the likely impact on Asian textile exports and employment will be substantial. One estimate is that under such a changed regime, if total employment remains unchanged but changes take place in its structure and distribution, then employment in light industries is predicted to fall by over 20 percent in Europe and America.

Employment in the corresponding sectors of the MFA exporters is predicted to rise by as much as 80 percent. However, the pattern thus far has not been encouraging, as it has been estimated that various non-tariff barriers set up by Northern countries on textile imports have actually increased, by taking advantage of the transition clause loopholes in the GATT. Even if very large magnitudes of change are not realised eventually, as is likely, the directions are still important. This is because in many Asian countries, female manufacturing employment is already heavily concentrated in light industries and incremental employment generation in these sectors is also largely dominated by women.

<< Previous | Next >>

 

© Copyright 1998, prepared by Engender for UNIFEM