Since the 1950s, the textile industry in many newly independent countries has made great progress, and a large number of textiles have flooded into the international market. In order to protect the domestic textile industry, the textile industry in the United States and other developed countries signed the Multi-fiber Agreement in 1974, allowing developed countries to temporarily rely on quota protection to restrict textile imports, thus providing an opportunity for the structural adjustment of the textile industry whose competitiveness has been weakened in developed countries. With the development of international trade integration, WTO reached the Agreement on Textiles and Clothing from 1994 in the Uruguay Round, which stipulated that the import quota system of all textiles and clothing would be abolished from 2005.
No quota era:
During the Uruguay Round negotiations from 65438 to 0986, textile trade was put on the negotiation agenda, and finally the provisions of the Agreement on Textiles and Clothing (ATC) were reached, and the Multi-Fiber Agreement (MFT) was gradually abolished, bringing textile and clothing trade into the GATT system. According to Article 2, paragraphs 6 and 8 of ATC, during the transition period from 12 3 1 to 1 in 2004, importers will gradually cancel all quantitative restrictions in three stages, and finally realize the liberalization of textile trade. That is, from 2005, the textile industry will usher in a "quota-free era".