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The MFA provided the industrialized countries the ability to limit imports from developing countries. These restrictions provided protection to domestic textile producers but allowed them to give preference to particular partner countries. The ATC favors the developing countries allowing them access to markets of industrialized countries that were previously protected. The elimination of the MFA will cause a more open market and the industry is likely to be located in smaller number of locations providing lower costs. This will likely cause enormous changes throughout most aspects of the industry...
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