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

38 Pages Posted: 15 Feb 2006

See all articles by Yongzheng Yang

Yongzheng Yang

International Monetary Fund (IMF) - African Department

Date Written: June 2004

Abstract

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.

Keywords: Bangladesh, MFA, ATC, textiles, clothing, quotas

JEL Classification: F13, F14, F17

Suggested Citation

Yang, Yongzheng, The End of Textiles Quotas: A Case Study of the Impact on Bangladesh (June 2004). IMF Working Paper, Vol. , pp. 1-38, 2004. Available at SSRN: https://ssrn.com/abstract=878932

Yongzheng Yang

International Monetary Fund (IMF) - African Department ( email )

1700 19th Street, NW
Washington, DC 20431
United States
202-623-4339 (Phone)
202-623-4237 (Fax)

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