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

Yongzheng Yang and Montfort Mlachila

No 331278, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

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.

Keywords: International Relations/Trade; Labor and Human Capital (search for similar items in EconPapers)
Pages: 35
Date: 2004
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Citations: View citations in EconPapers (2)

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