THE EFFECTS OF THE EXPIRATION OF THE WORLD TRADE ORGANIZATION’S MULTIFIBRE AGREEMENT ON NIGERIA’S TEXTILE INDUSTRY: A STUDY OF NICHEMTEX LIMITED IKORODU, LAGOS; 2001-2010


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TABLE OF CONTENT

Title page
List of acronyms
Abstract
Table of Content

CHAPTER ONE
1.0       INTRODUCTION
1.1       Background to the study
1.2       Statement of Research Problem
1.3       Research Questions
1.4       Research Aim and Objectives
1.5       Research Assumptions
1.6       Justification of Study
1.7       Scope and Limitations of the Research
1.8       Definition of Key Concepts
1.9       Organization of Chapters

CHAPTER TWO
2.0 LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.1 Introduction
2.2.0 Literature Review
2.2:1 The Concept and operations of Multi Fibre Agreement (MFA)
2.2.2 The WTO Agreement on Textiles and Clothing 1995 – 2005
2.2:3 Multi Fibre Agreement and Global Politics
2.2:4 Issues and Perspectives of WTO on Developing Countries
2.2.5 Historical Background and Institutional Characteristics of the WTO
2.2:6 The Emergence of WTO
2.2:6a Institutional Structures of the WTO
2.2:6b.Council for Trade Related Aspects of Intellectual Property Rights
2.2:6c.WTO Dispute Settlement Procedure
2.2:7  Accession to the WTO
2.2.8 The Effects of the Expiration of the Multi Fibre on Developing Countries:     An Overview
2.2.9 Issues in WTO‘s MFA and its Impacts on Textile Industries in Developing Countries
2.2:9a  Impact of WTO Accession on East Asia
2.2:9b WTO and Latin American Countries: The Experience of Brazil
2.2:9c WTO and African Countries
2.2:9d WTO and North African States
2.2.10 General Overview of the Effects of  WTO on Developing Countries
2.3 Theoretical Framework-Liberal Economic theory of Comparative Advantage

CHAPTER THREE
3.0 RESEARCH  METHODOLOGY
3.1 Introduction
3.2:1 Location of the Study Area
3.2.2 Historical Background of the Study Area
.3.2:3 Types and Sources of Data
3.2:4 Research Instruments
3.2:5 Population Sampling and Sampling Techniques
3.2:6 Population Sampling and Sampling Techniques
3.2:7 Data Collection Procedures
3.2:8 Data Transcription and Analysis Technique (DTAT)
3.2:9 Problems and Challenges encountered during Fieldwork

CHAPTER FOUR
4.0 HISTORICAL BACKGROUND OF TEXTILE INDUSTRIES IN NIGERIA
4.1 Introduction
4.2 Traditional Textile Industry in Pre- colonial Nigeria
4.2:1 Textile Production in pre – colonial societies of Central and Northern Nigeria
4.2:2 Textile production in pre- colonial Yoruba societies
4.2:3 Textile Production in Igboland and River Rine Area
4.3       The implement used in pre colonial textile industry in Nigeria
4.3.1 Production Process in pre-colonial textile industry
4.3.2 Challenges of Pre-Colonial Textile Industries
4.4       Textile Production under colonial government
4.4.1 Challenges of Textile Industry during Colonial Era
4.5       Textile production in Post Colonial period
4.5.1 Nature of Operation and Ownership structure of textile Industries
4.5.2 Ownership structure
4.6       Challenges of Post Independence textile Industries

CHAPTER FIVE
5.0 DATA PRESENTATION AND ANALYSIS OF THE EFFECTS OF THE EXPIRATION OF MULTI FIBRE AGREEMENT ON NICHEMTEX NIGEIRA LIMITED 2001-2010
5.1Introduction
5.2       Socio – demographic Characteristics of Respondents
5.3       Objectives of the Study
5.4       Discussion of Major Findings
5.5       Relating Research Assumption to Research Findings

CHAPTER SIX
6.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS
6.1       Introduction
6.2       Summary
6.3       Conclusion
6.4       Recommendations
6.5       Contribution to Knowledge
References




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.




CHAPTER ONE

INTRODUCTION

1.1.            Background to the study

What is today known as Multi Fiber Agreement under World Trade Organization (WTO) had its root from General Agreement on Tariffs and Trade (GATT) as the only multilateral instrument governing international trade on textile and clothing. Multi Fiber Agreement was established in 1974 as a short term measure to allow developed countries to adjust to imports from developing world. It is an international agreement under which two countries may negotiate quota restrictions on textile and apparel imports from each other. The Multi Fiber Agreement was therefore set up as a set of formal quota agreements and restrictions governing textiles and clothing trade between developing countries and developed world. The expiration of Multi Fiber Agreement (MFA) in 2005 heralded tremendous opportunities and uncertainties for the textile industries in both developed and developing countries.

Naumann (2006) has argued, no other sector has seen such a rigid institutionalisation of quantitative restrictions, which in turn have had very wide reaching intended and unintended consequences on textile industries in Nigeria. In fact, quotas in this sector have been the common denominator that have shaped the development path of the textile industries and have been the single most important factor contributing to its worldwide diffusion in recent decades.

With the WTO Agreement on Textiles and Clothing providing a scheduled removal of MFA quotas over the decade 1995 – 2005, global changes relating to quota phase-out took place during the early stages of the Agreement. It is against this backdrop that this study examined the effects of the expiration of the MFA on Nichemtex Nigeria Limited, Ikorodu, Lagos.

However, it is important to note that from 1974 onwards, world trade in textiles and clothing has been governed by the Multi-Fibre Arrangement (MFA) under which many industrial......


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