India, The Multi-Fibre Arrangement and the Uruguay Round

322 Pages·2000·15.77 MB·English

by  World Bank Group

8466
d
e
z
ri
o
h
ut
A
e
r
u
s
o
cl
s
Di
c
bli
u
P
Urugua'yRound
d
e
z
ri
o
h
ut
A
e Textiles Trade
r
u
s
o
cl
s
Di and the
c
bli
u Developing Countries
P
d
e
z Eliminating
ri
o
h
ut the Multi-Fibre Arrangement
A
e
ur in the 1990s
s
o
cl
s
Di
c
bli
u
P Carl B. Hamilton
editor
d
e
z
ri
o
h
ut
A
e
r A World Bank Publication
u
s
o
cl
s
Di
c
bli
u
P

Textiles Trade
and the
Developing Countries
Eliminating the Multi-Fibre
Arrangement in the 1990s
Carl B. Hamilton
editor
A project sponsored by the Swedish International
Development Authority (SIDA), the Rockefeller
Foundation, and the World Bank.
This book resulted from a workshop on "Interna-
tional Textile Trade, the Multi-Fibre Arrangement
and the Uruguay Round," held in Stockholm, June
1989, organized by the Institute for International
Economic Studies, University of Stockholm, and the
Swedish Centre for Business and Policy Studies
(SNS),S tockholm.
The World Bank
Washington, D.C.
Copyright i 1990
The International Bank for Reconstruction
and Development/THE WOIRLDB ANK
1818 H Street, N.W., Washington, D.C. 20433,U .S.A.
All rights reserved
Manufactured in the United States of America
First printing February 1990
The findings, interpretations, and conclusions expressed in this book are
entirely those of the authors and should not be attributed in any manner to the
World Bank, to its affiliated o:rganizations,o r to members of its Board of Execu-
tive Directors or the countries they represent.
The material in this publication is copyrighted. Requests for permission to
reproduce portions of it should be sent to Director, Publications Department, at
the address shown in the copyright notice above. The World Bank encourages
dissemination of its work and will normally give permission promptly and,
when the reproduction is for noncommercial purposes, without asking a fee.
Permission to photocopy portions for classroom use is not required, although
notification of such use having been made will be appreciated.
The complete backlist of publications from the World Bank is shown in the
annual Index of Publicationsw, hich contains an alphabetical title list and indexes
of subjects, authors, and countries and regions; it is of value principally to
libraries and institutional purchasers. The latest edition is availablef ree ofc harge
from the Publications Sales Unit, The World Bank, 1818 H Street, N.W., Wash-
ington, D.C. 20433,U .S.A., or from Publications, The World Bank, 66 avenue
d'Iena, 75116 Paris, France.
Libraryo f CongressC ataloging-in-PublicationD ata
Textilest rade and the developing countries: eliminating the multi-fibre arrange-
ment in the 1990s/ Carl B.H amilton, editor.
p. cm.- (The Uruguay roimd)
"A project sponsored by the Swedish International Development Authority,
the Rockefeller Foundation, and the World Bank."
Based on a workshop held in Stockholm in June 1989.
1. Textile industry-Law and legislation-Developing countries-Con-
gresses. 2. Clothing trade-Law and legislation-Congresses. 3. Textile
industry-Law and legislation-Congresses. 4. Uruguay Round (1987- )-
Congresses. I. Hamilton, Carl. II. Sweden. Styrelsen for internationell
utveckling. III. Rockefeller Foundation. IV. International Bank for Recon-
struction and Development. V. Series.
K3921.A55 1989
343'. 078677'091724-dc2O
[342.3786770917241 89-70648
ISBN0 -8213-1380-0 CIP
Contents
Preface v
Participants vii
Acronyms and Initials ix
1. Introduction I
CarlB . Hamiltona nd Will Martin
Part I. Global Perspectives
2. Unraveling the Threads of the MFA 12
IreneT relaa nd John Whalley
3. Effects of the Multi-Fibre Arrangement on Developing
Country Exporters: A Simple Theoretical Framework 46
Will Martin and Suphat Suphachalasai
4. Effects of the Multi-Fibre Arrangement on Developing
Countries' Trade: An Empirical Investigation 63
Refik Erzan,J unichiG oto and PaulaH olmes
5. Adjusting to Textile and Clothing Quotas: A Summary
of Some Commonwealth Countries' Experiences
as a Pointer to the Future 103
Vincent Cable
iii
iv Contents
Part II. Established and Emerging Exporters' Perspectives
6. China and the Multi-Fibre Arrangement 139
Kym Anderson
7. Republic of Korea: Rapid Growth
in Spite of Protectionism Abroad 159
CarlB . Hamilton and ChungsooK im
8. India, The Multi-Fibre Arrangement
and the Uruguay Round 182
Rajiv Kumara nd Sri Ram Khanna
Part III. Alternative Approaches to Returning Textiles
and Clothing to Normal GATT Trading Rules
9. How to Cut the Textile Knot:
Alternative Paths to Liberalization of the MFA 215
Martin Wolf
10. Textiles in the Uruguay Round: Alternative Modalities
for Integration into GATr 238
SanjoyB agchi
11. Some Considerations on the Multi-Fibre Arrangement:
Past, Present and Future 263
MarceloR affaelli
12. Returning Textiles Trade to the Normal Workings
of GATT: A Practical Proposal for Reform 292
GaryS ampsona nd 'WendyT akacs
Preface
The chapters of this volume were originally presented at a meeting at
Thoresta, Stockholm, in June 1989. The purpose of the meeting was to
expose national decision makers on trade policy and key negotiators at
the GATT's Uruguay Round negotiations in Geneva, to facts, analyses,
and conclusions of policy-oriented economnistsw orking on world trade
issues. With this objective and target group in mind, it is clear why the
set of authors, and the style of the papers are not quite like those of a
standard academic conference. Thanks to the efforts of many individuals
and organizations, the meeting turned out to be a success, although the
final test of that is whether the Multi-Fibre Arrangement will in fact be
abolished, of course.
The meeting and this book would have been impossible without Lars
Anell (Sweden's Ambassador in Geneva) and Wolfgang Siebeck, until
recently the World Bank's representative in Geneva; and the sponsor-
ship of the Swedish International Development Authority (SIDA), in
particular its Director General, Carl Tham, and Enrique Ganuza; The
Rockefeller Foundation and Catherine Gwin; and the World Bank, in
particular Paul Meo and Refik Erzan.
The Thoresta meeting was organized in an excellent way. The credit
for that goes to Gunnar P. Eliasson,M arianne Schillera nd Eva Anderson,
all at The Centre for Business and Policy Studies (SNS), and Edda
Liljenroth, my secretary at the Institute for Intemational Economic Stud-
ies (HES).M ichael Sohlman and Ake Weyler were also supportive. Refik
Erzan and Paula Holmes of the World Bank, and Shole Blom, Edda
Liljenroth and Molly Akerlund of IIES,T orgny Wadensjo of SNS, played
V
vi Preface
essential roles in the efforts to transform the conference papers into book
chapters. Finally, thanks goes to Lena Hamilton for her firm support of
free trade in textiles and clothing.
Carl B. Hamilton
The Institute for International Economic Studies, University of Stock-
holm, and the Swedish Council for Research in the Humanities and
Social Sciences.
Stockholm, November 20,1989
Participants
Kym Anderson, Centre for International Economic Studies, University
of Adelaide, Adelaide, Australia
Lars Anell, Swedish Delegation, Geneva, Switzerland
Sanjoy Bagchi, GATT,G eneva, Switzerland
M. A. Bajwa, International Textiles and Clothing Bureau, Geneva,
Switzerland
Vincent Cable, Commonwealth Secretariat, London, Great Britain
Gunnar Eliasson, The Swedish Centre for Business and Policy Studies,
Stockholm, Sweden
Refik Erzan, The World Bank, Washington, DC, USA
Junichi Goto, The World Bank, Washington, DC, USA
Enrique Ganuza, Swedish International Development Authority,
Stockholm, Sweden
Erik Hagfors, Ministry of Foreign Affairs, Helsinki, Finland
Carl B. Hamilton, Institute for International Economic Studies,
Stockholm, Sweden
Mahmoud Hamza, UNCTAD, Geneva, Switzerland
Jaesuk Han, Ministry of Trade and Industry, Seoul, Republic of Korea
Chungsoo Kim, Korea Institute for Economics and Technology, Seoul,
Republic of Korea
Tadatsuna Koda, Permanent Mission of Japan, Geneva, Switzerland
vii
viii Participants
Rajiv Kumar, Bureau of Industrial Costs and Prices, New Delhi, India
Sri Ram Khanna, Delhi School of Economics, University of Delhi,
New Delhi, India
FlavioH elmond Macieira, Ministerio dos RelacionesE xteriores, Brasilia,
Brazil
Will Martin, National Centre for Development Studies, Australian
National University, Canberra, Australia
Stanislaw Patek, Ministry of Foreign Affairs, Stockholm, Sweden
Marcelo Raffaelli, GATT,G eneva, Switzerland
Michel Salib, GATT,G eneva, Switzerland
Darry H. E. Salim, Permanent Representative of Indonesia, Geneva,
Switzerland
Gary Sampson, GATT, Geneva, Switzerland
Klaus Peter Schmallenbach.,E uropean Community, Brussels, Belgium
Robert Shepherd, United States Trade Representative, Geneva,
Switzerland
Wolfgang Siebeck,T he World Bank, Geneva, Switzerland
K. A. Sivaramakrishnan, Ministry of Commerce, New Delhi, India
Michael Sze, Trade Department, Hong Kong
Wendy Takacs, University of Maryland, Baltimore, Maryland, USA
Claudio Valle, Department ofE xternal Affairs, Ottowa, Ontario, Canada
John Whalley, Centre for the Study of International Economic Relations,
London, Ontario, Canada
Peter Wise, Hong Kong Government Office, London, Great Britain
Martin Wolf, Financial Times, London, Great Britain
S. G. Yazdani, Permanent Mission of Pakistan, Geneva, Switzerland