Textile products were covered by the multifibre provision. Specific products included yarn, fabric and clothing. These specific sectors have been targeted because they are labour-sensitive. Where developing countries generally have an advantage in these sectors due to their high population and low wages of workers. 2003 Non-tariff barriers: Hilton Zunckel TB`s reward for restricted freedom 1/2003, February The impact of globalization on Gerhard Erasmus and Lee Padayachee TB`s negotiating tactics 2/2003, May The U.S.-SACU Free Trade Agreement: Impact on Hilton Zunckel TB`s Wheat Trade 3/2003, June Adherence to several regional trade agreements: Legal implications for the conduct of Henry Henry Mutai TB`s trade negotiations 4/2003, August Under the Multifibre Agreement, exports from developing countries were subject to quotas. Each country was allocated a certain number of authorized exports for each item. Only a certain percentage of the goods were admitted each year to each developed nation. Once this rate was reached, the country was only able to export other goods in the following calendar year. The MFA was introduced in 1974 as a short-term measure to enable industrialized countries to adapt to imports from developing countries. Developing countries and countries without a welfare state[1] have a comparative advantage in textile production because it is labour-intensive and their poor social security systems allow them to reduce labour costs.

[2] According to a study by the World Bank and the International Monetary Fund (IMF), the system has cost developing countries 27 million jobs and $40 billion a year in lost exports. [3] Developing countries have opposed measures such as a social clause in customs agreements in order to link them to the improvement of working conditions. There were some exceptions in the multifiber arrangement. Very poor countries, such as Bangladesh, have not been subject to restrictions, as quota submission would seriously affect the well-being of the nation. Countries with this advantage were able to expand their industries to such a level that the new competition that resulted from the end of the MFA did not seem to harm them, as they continued to have cheaper labour. 9. Concluding observations Far from leading to a smooth and full integration of trade in textiles and clothing into the usual WTO disciplines, the phasing out of quotas has led to a flood of activities aimed at curbing the natural development of free trade. As expected, the planned abolition of quotas, in line with the provisions of the final stage of ATC, has had the most profound impact.