Essay About Fears Of Rmg Sector And Rmg Sector Of Bangladesh

Hopes And Fears Of Rmg Sector In Post-Mfa Period
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RMG sector of Bangladesh which as, by this time
As the Multi-Fibre Arrangement (MFA) will be
passed its growth stage. Despite many
phased out by 2005 under the World Trade
shortcomings, it is now stable and a matured
Organisation (WTO) rules, Bangladeshi garment
industry. At this stage – when growth is steady
industry will no more enjoy quota and the
but not that rapid – the RMG sector of
industry will have to find its own place in the
Bangladesh is successfully utilising hundred per
competitive international market. Quota system
cent of its quota. From here we can bring some
affects an economy in two different dimensions.
logical assumptions. The RMG industry is
Economies, which are not competitive enough,
utilising its full quota. This means that it has
can have a share of the market taking the
successfully established a certain degree of
advantage of quota allocated to it. On the other
acceptability in the global market. Under the
hand, economies which are competitive enough
quota system, none can export beyond limit.
cannot enjoy as much market share as they can
When quota is waived, there will be no barrier to
afford because those cannot cross the limit of the
the export limit and thus RMG exports are
quota. When quota will be phased out, the
expected to increase. It is just a logical
economies of the first kind – like those of Nepal,
assumption. If it does not work – or in other
Bangladesh, Pakistan and Myanmar – are afraid
words, if export does not increase – in the quota-
that they would lose global market share. On the
free environment, it will not, at least, decrease.
other hand, the economies of the second kind –
So, hopefully, there is nothing serious to be
those of China, Thailand etc. – are expecting to
worried about.
gain more share of the global market.
However, there is also no room for complacency.
Nobody actually knows what is going to happen
Because, fierce competition in the global market,
after 2005 under WTO rules. But it is being
even in the local one, is predicted under the
feared that the readymade garments (RMG) of
quota-free environment. To face the upcoming
Bangladesh will take a severe jolt. But there are
fierce competition and to grab even more share of
several aspects of the WTO policies and the RMG
the global market, the RMG industry of
sector of Bangladesh which still holds out some
Bangladesh has to increase its efficiency in
hope. The full impact of free trade will not be felt
production, decrease lead time in the order-
at the very beginning of 2005.
delivery