The Agreement on Textiles and Clothing, also known as the ATC, was an international trade agreement that was created to regulate the trade of textiles and clothing among countries. The agreement was negotiated under the auspices of the World Trade Organization (WTO) and was in effect from 1995 to 2005.
The ATC was created as part of the Uruguay Round of trade negotiations, which took place between 1986 and 1994. The aim of the Uruguay Round was to liberalize global trade and to create a more level playing field for all countries, particularly developing countries.
The ATC was seen as a crucial part of this effort because the trade of textiles and clothing was one of the most heavily regulated and protected sectors in international trade. Many developed countries had strict quotas and tariffs on imports of textiles and clothing from developing countries. The ATC aimed to gradually remove these barriers to trade and to integrate the textile and clothing sectors into the broader framework of international trade.
Under the ATC, countries were required to phase out quotas on imports of textiles and clothing over a period of 10 years. This meant that developed countries had to gradually open their markets to imports from developing countries, while developing countries had to improve their competitiveness in the global textile and clothing market.
The ATC was hailed as a major achievement in international trade, as it represented a significant step towards the liberalization of trade in textiles and clothing. However, the agreement also had some critics, particularly in the developing world. Some argued that the phase-out of quotas was too gradual, and that it did not provide enough support for developing countries to improve their competitiveness in the global market.
Despite these criticisms, the ATC remains an important milestone in the history of international trade, particularly in the textile and clothing sector. It demonstrated that countries can work together to create a more open and fair trading system, and that trade can be a powerful engine for economic growth and development. Today, the legacy of the ATC lives on in the WTO`s ongoing efforts to promote free and fair trade among countries around the world.