The most (in)famous loophole in merchandise trade created through GATT was:
A) TRIPS
B) NTB
C) MFA
D) MBA

Question

Quizplus · Accepted Answer

The most infamous loophole in merchandise trade created through GATT was the Multi-Fibre Arrangement (MFA). The MFA allowed countries to impose quotas on imports of textiles and clothing from other countries, which was a clear violation of GATT rules on non-discrimination. This allowed countries like the United States and European Union to protect their domestic industries from cheaper imports from countries like China, India, and Bangladesh. The MFA was eventually phased out in 2005 with the implementation of the Agreement on Textiles and Clothing under the World Trade Organization. The Multi-Fiber Agreement (MFA) was a loophole created by the General Agreement on Tariffs and Trade (GATT) that allowed developed countries to impose quotas on imports of textiles and clothing from developing countries. This loophole was notorious for limiting the market access of developing countries, and it was only eliminated with the phasing out of the MFA in 2005. TRIPS (Trade-Related Aspects of Intellectual Property Rights), NTB (Non-Tariff Barriers), and MBA (Master of Business Administration) are not related to this particular loophole.

The Most (In)famous Loophole in Merchandise Trade Created Through GATT