Likely Impacts of Quota Policy on RMG Export from Bangladesh: Prediction and the Reality

  •  Shamima Sultana    
  •  Md. Asraful Alam    
  •  Arup Kumar Saha    
  •  U. M. Ashek    
  •  Md. Abu Talha Sarker    


The Multi-fibre Arrangement (MFA) (Note 1) in global trade in apparels and textiles was phased out in
December 2004. South Asian countries major concern was to prevent large-scale job losses due to liberalization
and globalization. It was apprehended that the RMG sector of smaller countries especially Bangladesh will be
adversely affected by losing a huge number of jobs, will face high competition from its low-cost competitor
countries and will experience negative impact due to its high dependence on the United States and the European
Union markets for its RMG products.
Despite the concern and fear of negative impact on in the aftermath of quota removal of RMG sector in
Bangladesh appears with positive trends along with the substantial increasing rate of export amount, the number
of jobs and industries and GDP’s growth. In 2010, the sector keeps around 20 percent GDP growth of the

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