The effects of the expiration of the world trade organization’s multifibre agreement on nigeria’s textile industry

Thesis Abstract

This research work examines the effects of the expiration of WTO’s Multi-Fibre Agreement (MFA) on Nigeria Textile Industries. The aim of this study was to examine the effects of the expiration of WTO’s Multi-Fibre Agreement (MFA) on Nichemtex Limited Ikorodu, Lagos; 2001 to 2010. However, the specific objectives of the study are To ascertain the nature of
WTO’s Multi-Fibre Agreement; to examine the extent to which the expiration of WTO’s
Multi-Fibre Agreement (MFA) has affected the Nichemtex Nigeria Limited between 2001-2010; to identify the extent to which the accession of China into World Trade Organization (WTO) arising from the expiration of the Multi-Fibre Agreement (MFA) has affected the Nichemtex Nigeria Limited between 2001-2010. The study reviewed relevant literature on the problem under investigation. The study relied on both primary and secondary data which was generated through In-depth interview, questionnaire for the primary sources and secondary sources which comprised of the use of books, journals, articles, internet materials, etc for the purpose of complementarity. From the analysis of the data, the study found out the followings First, the expiration of Multi Fiber Agreements impacted negatively on Nigeria’s textile industries; Second, contrary to the popular and general perception of the people, the study has shown that the collapse of textile industries in Nigeria was as a result of the trade liberalization policies of the WTO; in addition to both external and internal factors responsible for the collapse of these industries and internal factors played major roles. The study has also shown that the trade liberalization policies of the WTO favours Advanced Countries over the developing countries. Finally, trade liberalization policies of the WTO has reduced effects of textile industries’ contributions to national development in terms of its
Gross Domestic Product, employment generation and flow of Foreign Direct Investment (FDI).The study however made the following recommendations There is the need for a rethink on the ideological and uncritical commitment to wholesale acceptance of trade liberalization policies without considering the peculiarities of our environment; Government should ensure that taxes payable by these industries should be fewer in number, broad based and high revenue yielding with positive impacts on industry’s production; this can be done by improving infrastructure, skills and institutions required by modern production and distribution; Government can take advantage and invoke WTO safeguards on textiles which allows countries to temporarily protect industries that is considered a threat to foreign competitors; Government should support textile industries to combat smuggling and lower import taxes on mechanical equipment and other inputs; Nigeria must build the environment for conducive competitiveness by developing all the physical and human infrastructure for the fierce competition.