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The End of Textiles Quotas: A Case Study of the Impact on Bangladesh

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  • Yang, Yongzheng
  • Mlachila, Montfort

Abstract

This paper evaluates the effects on the Bangladeshi economy of phasing out textile and clothing quotas currently maintained by industrial countries. As part of the Uruguay Round WTO Agreements, these quotas will be completely abolished at the beginning of 2005. This will alter the competitiveness of various exporting countries, and those that have been less restricted by the quotas are expected to lose market share to their competitors. Bangladesh relies heavily on textile and clothing exports and is potentially very vulnerable to the abolition of the quotas. Based on assessments of quota restrictiveness and export similarity across countries and Bangladesh’s supply constraints, the paper concludes that Bangladesh could face significant pressure on its balance of payments, output and employment when the quotas are eliminated.

Suggested Citation

  • Yang, Yongzheng & Mlachila, Montfort, 2004. "The End of Textiles Quotas: A Case Study of the Impact on Bangladesh," Conference papers 331278, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331278
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    Cited by:

    1. Abul Bashar Mohammed, 2025. "Four Decades in the global apparel value chain: Evidence from Bangladesh," Departmental Working Papers 2025-01, The Australian National University, Arndt-Corden Department of Economics.
    2. Fahmida Mostafiz & Jianqiang Sun, 2023. "Policy Series Effects on Bangladesh Readymade Garments Exportation," Bulletin of Applied Economics, Risk Market Journals, vol. 10(1), pages 133-143.

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