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Morocco, Tunisia, Egypt and Jordan after the end of the multi-fiber agreement : impact, challenges and prospects (English)

This report investigates the impact of the Multifibre Arrangement (MFA's) lapse on the Textiles and Clothing (T&C) sectors in four countries of the Middle East and North Africa region: Egypt, Jordan, Morocco, and Tunisia (the MENA-4). The phase-out of the MFA under the Agreement on Textiles and Clothing (ATC) on January 1, 2005, has led to a significant decline in international prices of textile and clothing products, benefiting consumers worldwide. But the lifting of remaining T&C quotas has also created tremendous pressures for retailers, distributors, and producers. Some of the most efficient producers, such as China and India, now free of quantitative limitations, are increasing their shares in major import markets at the expense of other countries. In all four countries, the T&C sectors play a crucial role in trade, foreign exchange earnings, and job creation. These countries are key partners in the Euro-Mediterranean Partnership and, through the Agadir Agreement, in the Greater Arab Free Trade Area group. In both contexts, specific industry and trade policies could maximize the opportunities presented by MFA removal. This report analyses the early effects of MFA removal on the MENA-4 and formulates concrete policy recommendations on how to mitigate its impact. The future of the T&C sector in the four countries has yet to be determined. With the right policies, decision makers can take advantage of the ongoing processes of "creative destruction." Policies should be devised to accentuate investment flow and employment creation, to mitigate the impact of employment losses, and to strengthen the international competitiveness of the sector.

Details

  • Author

    Pigato, Miria, Diop, Ndiame, Malouche, Mariem, Baroncelli, Eugenia

  • Document Date

    2006/12/01

  • Document Type

    General Economy, Macroeconomics and Growth Study

  • Report Number

    35376

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Tunisia,

    Middle East and North Africa,

  • Region

    Middle East and North Africa,

  • Disclosure Date

    2010/07/01

  • Disclosure Status

    Disclosed

  • Doc Name

    Morocco, Tunisia, Egypt and Jordan after the end of the multi-fiber agreement : impact, challenges and prospects

  • Keywords

    social and economic development;trade facilitation and logistics;free trade agreement;effect of trade;imposition of quota;international trade commission;trade in textile;rules of origin;unit price;expansion of market;structure of employment;removal of quota;Social Safety Nets;share of output;market country;movement of good;effect of tariff;gains and losses;net welfare gain;industry and trade;economies of scale;cumulative market share;export similarity indices;real exchange rate;loss of employment;price market;

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Citation

Pigato, Miria Diop, Ndiame Malouche, Mariem Baroncelli, Eugenia

Morocco, Tunisia, Egypt and Jordan after the end of the multi-fiber agreement : impact, challenges and prospects (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/365201468114531491/Morocco-Tunisia-Egypt-and-Jordan-after-the-end-of-the-multi-fiber-agreement-impact-challenges-and-prospects