Pakistan, Bangladesh doing well post-quota

New Delhi, Oct 11: Bangladesh remains on the list of top suppliers of textile and clothing for European and North American buyers. According to an ILO report, garment factories are not closing down as they did during the 2001-03 period following the sharp decline in the US market. On the contrary, they are reportedly consolidating their capacity.

As per the report, Pakistan average monthly growth in textile and clothing exports registered an increase of 22.1% in the first four months of 2005 compared with the same period of 2004. Textile manufacturers in Pakistan attribute this huge improvement to the phaseout of quotas.

Exports of cotton cloth, knitwear, towels and ready-made garments have mostly grown following the elimination of quantitative restrictions on textile exports from January 2005 onwards. Textile and clothing exporters also indicate that better results could have been achieved if the EU had not imposed a 13.1% anti-dumping duty on bedwear, as a result of which bedwear exports dropped by 5.4%, and reintroduced a 12% customs duty on textile exports from Pakistan.

Furthermore, Bangladesh benefits from duty-free access to the EU, with more generous rules of origin in sight. Bangladesh’s apparel exports were far from declining in the first quarter of the post-quota regime, although confronted with strong competition from China and India. Bangladesh managed to maintain its comparative advantage despite a growing tension on prices. Orders are on the rise and manufacturers are exploring new strategic alliances.