Post Mfa in Rmg Sector
Post Mfa in Rmg Sector
Success in global trade is vital to Bangladeshs economic growth prospects and its hope of meeting the MDG target of halving poverty by 2015. As global competition in the Readymade Garments (RMG) industry heats up, Bangladesh cannot afford to be sidelined. Presently, three-quarters of Bangladeshs export earnings come from sales of knitwear and woven goods, of which 96 percent are destined for the US and EU markets. The apparel sector is the biggest source of industrial jobs and, along with the accessories industry, provides direct employment for over 2 million workers, mostly women. Moreover, RMG export is a major source of foreign exchange earnings for the country.
Bangladesh emerged as a global supplier of RMG thanks to the Multi-Fibre Arrangement (MFA). Textile and garment quotas under the MFA were finally phased out as of January 2005 in accordance with the WTO Agreement on Textiles and Clothing (ATC) of 1994. Countries that relied on the secured market of quotas now face enormous challenges amid intense global competition. Bangladeshs heavy reliance on this sector gives rise to certain vulnerabilities. With neighboring countries, such as India and China, building ever more formidable RMG industries, a substantial part of Bangladeshs RMG workforce could