hich govern manufactured goods, but exclude textiles and clothing at the same time, are expressly contrary to the “spirit of GATT” and thus trade liberalization. These products become subject to import barriers, such as the Multi-fibre Agreement (MFA). The MFA places restrictive quotas on imports of these goods from developing countries. Further design contradictions have surfaced in regard to textiles and clothing. While developing countries, were pressured to rapidly implement Uruguay Round Agreement (URA) provisions, the MFA imposed by developed countries is only to be phased out over a ten year period. This is a clear example of the unequal treatment within the international trade system. Another contradiction, which follows the same theme of inequitable design and implementation specification between developed and undeveloped nations, is that of infant industry protection. Infant industry protection allows for the restriction of imports and foreign direct investment so that a new domestic industry can establish itself in a particular market. Once again, laws allow industrialized countries to implement this tool, but developing countries are forbidden to do so.It is important to note that the existence of inequitable trade barriers and institutional rules do, in fact, have adverse effects on the North in the long run as well. First of all, it is essential to allude to the interconnectivity between the North and South economically. According to UNCTAD data, developing country markets, as a whole, account for 24 percent of exports of developed countries, 15.2 percent of exports of EU, 52 percent of Japan and 42 percent of the US. To begin, developing countries do not run surpluses, and thus must be careful not to increase their imports without matching it with exports. To do so would lead to an account deficit. Trade liberalization has been blamed in several cases for the current account deficits of developing ...
