ABSTRACT
An important feature of the Uruguay Round agreement was the agreement to abolish the Multifiber Arrangement system of quotas that regulated exports of textile and apparel products from developing countries for close to four decades. While enormously welcome, the abolition of these quotas will not necessarily generate automatic benefits to individual countries. The abolition of the quotas will create opportunities for developing countries, but will also expose them to additional competition from other, formerly restrained, exporters. The outcome for any individual country will depend heavily on its policy response. Countries that take the opportunity to streamline their policies and improve their competitiveness are likely to increase their gains from quota abolition.
