Trade in Textiles

1. The removal of the Multi-Fiber Agreement was not positive for the world economy because it allowed more growth for strong economies and weakened the small economies. The pardon of the MFA is a conservative act designed to rich the richer economies and degrade the weaker ones. However, it is a fair pardon because it will allow more free-market competition. If China is being more efficient with their production of textiles then they should be rewarded, but in the long run it will cause to be negative for the world economy. But nonetheless, I don’t think it was fair ethically to remove the Multi-Fiber Agreement, but when you think about it in a business aspect, it is fair.

2. As a producer in a developing nation such as Bangladesh, the expiration of the Multi-Fiber Agreement would hurt the economy tremendously. Having a set quota for the country would allow continual growth of the economy. However, it would not let us develop to our fullest potent ional. The knowledge of having the agreement terminated would cause us to be more alert about where our position in the world is. We would then think more about our survival and try to be more efficient in the production of textiles. In response to the termination of the agreement I would focus on trying to find keep production going without any disruptions and would talk with other countries to make stronger ties. I would also try to bring back the quotas from the Multi-Fiber Agreement by talking with the WTO.

3. I feel as if by placing tariffs on exports of textiles from China it is actually hurting the world economy. The tariff might not be too much but China will still produce and export the same amount, whether the tariffs are there or not, therefore, when they export, the price will be higher for the importers of textiles from China. This is going to hurt the economies of different countries. However, if China is placing a tariff to gain a little extra on their exports, it isn’t a completely bad because it’s business. Profits are the main goal for many businesses, even importing and exporting. Regardless, I feel it is right for China to place the tariffs.

4. I don’t think the