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Bangladesh has still chance to sustain in the readymade garment market in the post-MFA (multi-fibre arrangement) era, but the sector urgently needs capacity building for enhancing export competitiveness. This was observed by discussants at a dialogue on 'MFA Phase out: Challenges in Bangladesh RMG Sector' organised by The Media for People, a policy research organisation, at the IDB Bhaban conference room in Dhaka. Mustafizur Rahman, research director of the Centre for Policy Dialogue, said world's leading chain stores are opening their offices in Bangladesh though they know about the MFA phase out. "This indicates that US buyers will not quit Bangladesh in a hurry," said Rahman presenting the keynote paper at the dialogue. Quoting a recent study of the United States International Trade Commission (USITC), Zillul Hye Razi, economic and political affairs officer of the European Union in Bangladesh, said after phasing out of the quota system in the next year, US firms are likely to expand their sourcing from South Asia. Moreover, some US firms consider that Bangladesh could emerge as competitive alternative to China for mass-produced and low-end apparel, he said. The USITC carried out the confidential study upon request from the United States Trade Representative (USTR). The report assesses the textile and apparel industries of more than 40 countries as of June 2003. According to the report, low labour cost, a near self-sufficiency in knit fabrics, duty-free access to major world import markets including the EU, Canada and Norway and mass production in basic garments are the major competitive factors for Bangladesh. However, other speakers stressed the need for capacity building of the sector and urged the government to extend necessary supports to help attain competitiveness.
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