IN312 International Trade
Cha
p
ter 6
p
Politics &
Political Positionin
g
g
Pat Yanez/FIT
Department of International Trade & Marketing (ITM)
http://www3.FITnyc.edu/ITM
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Politics and Positioning in International Trade: The Multi-Fiber Arrangement and Textile D, Study notes of International Business
An overview of the politics and political positioning in international trade, specifically focusing on the multi-fiber arrangement (mfa) and textile trade decision-making. The mfa is detailed from its inception in 1961 to its extensions in 1994 and the agreement on textiles & clothing (atc) from 1994 to 2013. The document also covers the impact of political manipulation, unfair competition laws, and government 'red tape' on the textile and apparel industry. Additionally, it discusses the role of labor unions and trade associations in political positioning.
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IN312 International Trade
Chapter 6
p
Politics & Political Positioning
g
Pat Yanez/FIT
Department of International Trade & Marketing (ITM)
http://www3.FITnyc.edu/ITM
The Multi-Fiber Arrangement & Its Extensions
1961
Short Term Arrangement
1962
Long Term Arrangement
1974 – 77
MFA I
1977 – 81
MFA II
1981 – 86
MFA III
1986 - 1991
MFA IV
1991, 92, 93
Extensions of MFA IV
1994 2004:
Agreement on Textiles & Clothing (ATC)
1994-2004:
Agreement on Textiles & Clothing (ATC)
2005-2013:
Safeguards
2005 - 2008 Unilateral2009 - 2013 Bilateral
Pat Yanez/FIT
Chapter 6 – Politics & Political Positioning:
Politics and Apparel TradePolitics
and Apparel Trade
Political manipulation of trade relationships
“Unfair Competition” laws to protect from:
Unfair Competition
laws to protect from:
Subsidies and Price Support Programs– Production Subsidies– Dumping (“import surges”)
Remedies: countervaling duties, trade embargoes
Government “
red tape
” as a trade barrier
Government
red
tape
as a trade barrier
Vehicles for political positioning:
- Labor unions– Trade associations
Pat Yanez/FIT
Chapter 6 – Politics & Political Positioning:
U S Textile Trade Decision
-
Making
U
.S. Textile Trade Decision-Making
Pat Yanez/FIT
Source: Going Global, Kunz & Garner, 2007. Page 145