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Structured assignment
Reference no. 204-012-4
Published by:
IBS Case Development Center (2007)
13 pages
Data source:
Published sources


This structured assignment is to accompany the case ''204-012-1''. The abstract of the case is as follows: Globalisation and the introduction of the MultiFibre Arrangement (MFA) in 1974 had changed the Ready Made Garment (RMG) industry of Bangladesh. Within a very short period of time the RMG sector of Bangladesh attained prominence in terms of its contribution to Bangladesh''s gross domestic product, foreign exchange earnings and employment. On 1 January 1995, the World Trade Organisation replaced the MFA with the Agreement on Textiles and Clothing (ATC). According to the ATC, by 2005, the RMG sector had to be fully integrated into GATT rules and the existing quotas had to come to an end. The removal of quotas threatened to increase competition in the global garment industry and limit Bangladesh''s growth. But Bangladesh could receive benefits under the Generalised System of Preferences and gain access to the EU and US markets, if it met the International Labour Organisation standards. The case helps to discuss the threats and opportunities for Bangladesh''s RMG industry after the phasing out of the MFA.


Bangladesh textiles industry; MultiFibre Agreement and Arrangement; Ready made garments; Agreement on textiles and clothing; Generalised System of Preferences; World Trade Organisation (WTO); Bangladesh gross domestic product; Bangladesh Garment Manufacturers and Exporters Association; European Union; Least developed countries; Backward linkages; Everything But Arms Initiative; Export processing zone; Core labour standards; Export quotas for LDC (least developed countries) garments
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