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What Is Multi Fibre Agreement

by Brian on October 15, 2021

Under the Multifibre Agreement (Multifibre and Arrangement), the United States and the European Union (EU) have restricted imports from developing countries in order to protect their domestic textile industries. Under the agreement, each signatory state was allocated quotas (numerically limited quantities) of specific items that could be exported to the US and the EU. (Note that at the beginning of the agreement, the EU did not exist in its current form; the agreement included the European Community (EC) and the European Free Trade Association (EFTA) at the time. If you wish to reuse this content on the web, in the written press or in other forms, we ask for official permission by writing to us on 7 editorial@fibre2fashion.com. Value chain dynamics in the textile and apparel sector Value chains describe the dynamics of value-added activities throughout the production cycle of a product or industry. Value chain analysis thus offers the opportunity to identify economic actors within a production cycle who are able to exert a decisive influence on production activities, including supply, logistics, sales and prices. While the concept of value chains was born in the 1960s and 1970s, when analysts used it to describe the trajectory of mineral exporting economies, it was not until the mid-1980s that this form of analysis was popularized by Michael Porter and applied more broadly to industry analysis. Value chain theory also challenges the traditional view that value is primarily added in the production process of a good, showing that much more value is often added in the design, marketing, branding and distribution of a product. In addition, it is recognized that in an increasingly globalized and interconnected economy, production and production decisions often take place in different locations at a given time. This applies in particular to the textile-clothing pipeline. The concept of value chains has different dimensions, including the input-output structure (which includes the five design elements, inputs, production, wholesale and retail trade), spatial scale (the geographical dimensions of the elements listed above) and control of activities (including the influence that different actors can exert along the value chain) (Gereffi: 1994).

Each of these concepts is important for understanding the dynamics within a sector. While the input-output structure categorizes the most important generic elements of a value chain, the spatial scale defines the location characteristics of a sector. In the Tex-Clo sector, for example, the design of a sample of clothing and fabrics can be carried out in the United States of Europe, which is subcontracted to a South African company, which in turn can subcontract certain production steps to manufacturers based in Lesotho or Swaziland. .

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