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

Author/Editor: Mlachila, Montfort ; Yang, Yongzheng
Publication Date: June 01, 2004
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: This paper evaluates the effects on the Bangladeshi economy of phasing out textile and clothing (T&C) quotas currently maintained by industrial countries. The planned abolition of the quotas under the Agreement on Textiles and Clothing in 2005 will alter the competitiveness of various exporting countries. Bangladesh relies heavily on textile and clothing exports and is potentially very vulnerable to this change in competitiveness. Based on assessments of quota restrictiveness and export similarity, and an analysis of its supply constraints, the paper concludes that Bangladesh could face significant pressure on its balance of payments, output, and employment when the quotas are eliminated.
Series: Working Paper No. 04/108
Subject(s): Import quotas | Bangladesh | Multifiber Arrangements | World Trade Organization | Access limits | Export competitiveness | Textiles

Author's Keyword(s): Bangladesh | MFA | ATC | textiles | clothing | quotas
Publication Date: June 01, 2004
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1082004 Pages: 37
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