Which of the following is a disadvantage of the General Agreement on Tariffs and Trade's (GATT's) policies? It abolished the Multifiber Arrangement (MFA) designed to promote free trade in textiles. It increased the average trade tariffs among developed countries. Trade in services and intellectual property (IP) protection was not covered. Non-tariff barriers that were easy to verify and challenge were removed.

Question

Business

Andrade

12 March, 12:05

Which of the following is a disadvantage of the General Agreement on Tariffs and Trade's (GATT's) policies? It abolished the Multifiber Arrangement (MFA) designed to promote free trade in textiles. It increased the average trade tariffs among developed countries. Trade in services and intellectual property (IP) protection was not covered. Non-tariff barriers that were easy to verify and challenge were removed.

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Answers (2)

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Moshe Berger · Answer 1

It abolished the Multifiber Arrangement (MFA) designed to promote free trade in textiles.

Explanation:

The GATT fail to follow the provisions made by the MFA, not knowing that is it meant for the protection of local industries from the too much goods been imported by the the country and not giving it full access to export protect domestic industries from the effect of excess imports, instead they prefer large tariffs on textile products and joint the textile trade into the World Trade organization (WTA). The disadvantage was that It abolished the Multifiber Arrangement (MFA) designed to promote free trade in textiles.

Jenna Burke · Answer 2

It abolished the Multifiber Arrangement (MFA) designed to promote free trade in textiles.

Explanation:

One major disadvantage of the General Agreement on Tariffs and Trade's (GATT's) policies was that it abolished the Multifiber Arrangement (MFA) designed to promote free trade in textiles.

GATT did not abide by the provisions of the MFA which tried to protect domestic industries from the effect of excess imports by limiting the quota each country can export, rather it had preference for large tariffs on textile products and integrated textile trade into the World Trade organisation.