Upon establishment of GATT, there were many loopholes in the Multifibre Arrangement (MFA), designed to limit free trade in textiles.

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The MFA was designed to limit free trade in textiles and had several loopholes, which allowed countries to exceed the quota limits set by the agreement. These loopholes were later addressed by the Agreement on Textiles and Clothing (ATC) under the World Trade Organization (WTO). The Multifibre Arrangement (MFA) was established in 1974 to limit free trade in textiles and clothing. However, there were many loopholes in the agreement that allowed countries to circumvent the restrictions. This led to significant tensions in the global textile industry and was one of the reasons for the establishment of the World Trade Organization (WTO) in 1995 to regulate and enforce free trade agreements like the MFA.

Upon Establishment of GATT, There Were Many Loopholes in the Multifibre