Surviving in a Quota-Free World: Will Bangladesh Make It?
Centre for policy dialouge
March 2004
Summary:
Bangladesh continued to remain a major player in the massproduced segment of US apparels market. It is being observed that as quotas were phased out, prices in most categories have tended to come down. At the same time with quota elimination, US market size of those quota categories have also tended to expanded substantively. Professor Rahman drew attention to the fact that a $39 billion US apparel import market has now become a $78 billion market. Bangladesh had earlier
demonstrated a capacity to enhance her supply volume as quotas were increased under the ATC, and subsequently eliminated. In most cases, however, increased volume has not matched the fall in price level, leading to a decline in export earnings. Producers were able to adjust to falling prices either through profit reduction or productivity enhancement, or a combination of both. Bangladesh has also demonstrated some capacity to enter into market segments which have earlier been restrained by quotaMarch 2004
Summary:
Bangladesh continued to remain a major player in the massproduced segment of US apparels market. It is being observed that as quotas were phased out, prices in most categories have tended to come down. At the same time with quota elimination, US market size of those quota categories have also tended to expanded substantively. Professor Rahman drew attention to the fact that a $39 billion US apparel import market has now become a $78 billion market. Bangladesh had earlier
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