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An international quota system was created through the Multifibre Arrangement (MFA) regulating world trade in textiles and clothing arena. However, employment in these industries continued to decline in the developed world as manufacturers relocated production in lower-cost countries. After the terrorist attacks on September 11, 2001, textile quotas were imposed on Pakistan by the U.S. and the European Union. The MFA was later replaced by the World Trade Organization (WTO) Agreement on Textiles and clothing, requiring quotas to be removed by January 1, 2005 however the tariffs remained. The end of quotas was expected to create big winners and losers...
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