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Post-Multifibre Arrangement Adjustments and China: After all, the Emperor is wearing no new clothes?

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The trade regime in textile and apparel appears to be emerging in ways which are quite different from what had been widely anticipated before the termination of the Agreement on Textiles and Clothing (ATC). Since the end of ATC, there has been growing and spreading set of trade restrictions targeted primarily at China, the largest shipper of textile and apparel, through a series of adjustment resisting agreements. This policy brief discusses the evolution of these agreements and draws parallels to those under the older Multifibre Arrangement (MFA). It is argued that there is potential for these restrictions to be prolonged and grow, as well as spread to other products through the product-specific safeguards mechanism included in the conditions of China’s World Trade Organization (WTO) accession. The brief draws from a longer paper by Dayaratna-Banda and Whalley (2007)

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