Thus, the Agreement on Textiles and Clothing (ATC) stipulated a systematic and progressive elimination of the Multi Fiber Arrangement (MFA) over a span of ten years.
However, following the Second World War, limitations on cotton textiles imports were first imposed through voluntary export restraints.
Eventually, these were referred to as "residual restrictions" within the context of the General Agreement on Tariffs and Trade (GATT).
These categories were defined as consolidated subgroups of textile and apparel products that shared specific characteristics or raw materials.
[8] Abolition of quota restrictions created vast opportunities for export expansion from developing countries, especially China, India, and Pakistan, which were the most likely to benefit.
[11] In the liberalized categories, imports from China to the EU saw a near doubling in value during the initial three quarters of 2005, with an even steeper rise in volume due to substantial unit price declines.
Some companies relocated to countries with lower labor costs like Guatemala, Mexico, Bangladesh, and China.
A Free trade agreement (FTA) is an international deal between cooperating states to form a free-trade area.