Phasing out of Multi-fibre Arrangement: implications for the Indian garment exporting firms

Keshari, Pradeep Kumar and Nair, Tara and Avasthi, Dinesh (2013): Phasing out of Multi-fibre Arrangement: implications for the Indian garment exporting firms. Published in: Foreign Trade Review , Vol. 30, No. 24 (December 1995): pp. 78-88.

Abstract

The study suggests that the entrepreneurs in the Indian clothing industry is all set to take on the challenges and opportunities created by the signing of the GATT-94's Final Act by the Government of India. Small and medium enterprises in the industry are confident about their inherent competitive advantage that would facilitate greater market penetration. Yet, they realize that China, Pakistan and Bangladesh would emerge as major rivals in the global market along with multinationals.They have serious doubt about the distribution of actual gains during the transition period as they view the process and pace of integration envisaged in the GATT-94 Agreement as disproportionately biased towards the developed countries. The pattern of phasing out of MFA would practically deprive them of their access to real benefits. Similarly, along with the disappearances of the restrictive regime of quotas, they see the possibility of new types of barriers emerging in future. It is this uncertainty, which spreads over the optimism of Indian firms in the garment sector like a layer of mist that needs attention in the policy making fora.

• Item Type: MPRA Paper
• Language: English
• Keywords: General Agreement on Tariff and Trade, Multi-fibre Arrangement, Indian clothing industry, Small and medium enterprises
• Subjects: F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F5 - International Relations, National Security, and International Political Economy > F53 - International Agreements and Observance ; International Organizations; F - International Economics > F6 - Economic Impacts of Globalization; L - Industrial Organization > L6 - Industry Studies: Manufacturing > L67 - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

References

Bhattacharya, S.K., "Implications of the Uruguay Round of Negotiations on Small and Medium Enterprises: The case of Indian Textiles and Clothing Industry", in Keshari, et al. (1994a), Proceedings of the National Workshop on the Implications of GATT-94 for Indian Small and Medium Enterprises, (Ahmedabad: Entrepreneurship Development Institute of India).

Das, R. U. (1994), “MFA Phasing Out: Implications for the Indian SMEs”, in Keshari, et al. (1994a), Proceedings of the National Workshop on the Implications of GATT-94 for Indian Small and Medium Enterprises, (Ahmedabad: Entrepreneurship Development Institute of India)..

Hamilton, C.B (1990), The Uruguay Round: Textiles Trade and The Developing Countries (ed.), (Washington, D.C. World Bank).

Keshari, P. K., Nair, T., Avasthi, D. (1994a), Proceedings of the National Workshop on the Implications of GATT-94 for Indian Small and Medium Enterprises, (Ahmedabad: Entrepreneurship Development Institute of India).

Keshari, P. K., Nair, T., Avasthi, D. (1994b), A Study on Implications of GATT-94 for Indian Small and Medium Enterprises, in the Proceedings of the National Workshop on the Implications of GATT-94 for Indian Small and Medium Enterprises, (Ahmedabad: Entrepreneurship Development Institute of India).

MVIRDC (1995), GATT Agreements: Result of the Uruguay Round, (Third Edition), (Bombay: MVIRDC world trade center).