The Generalized System of Preferences is a U.S. trade program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories. GSP was instituted on January 1, 1976, by the Trade Act of 1974.
The multi-fibre Agreement International trade agreement under which two countries may negotiate quota restrictions on textile and apparel imports from each other. MFA has governed the world trade in textiles and garments from 1974 through 1994, imposing quotas on the amount developing countries could export to developed countries. MFA restrictions are normally prohibited under the World Trade Organization (WTO) rules and must have been phased out by 2005.
It is a limited quantity of a particular product (Textile and apparel items) which under official controls (WTO) can be produced, exported, or imported.
No Quota/Quota Elimination
No limit for textile goods to be produced and exported or imported. As a result, economic giants of the developing world, China and India, will be able to manufacture and export as many textile goods as they desire and world’s smallest and least developed countries, like Nepal and Cambodia, will see their textile industries pushed out to the periphery.