Quantitative trade restrictions on textiles and apparel have channeled trade and investment for more than 30 years. Under the Uruguay Round Agreement on Textiles and Clothing, these restrictions--originally developed under the Multi-Fiber Arrangement (MFA) and earlier agreements--will end by the year 2005. As a result, a substantial portion of the protection enjoyed by the textile and apparel industries in "developed" countries--like the United States--will disappear. Thus, structural change in textile and apparel production and trade will be accelerated by the MFA phase-out. As apparel production and, to a lesser extent, textile production migrate from "developed" to "developing" countries, the MFA phase-out will affect not only the U.S. textile industry, but may also have an impact on the U.S. cotton sector.