Competitiveness of the Garment Industry in Pakistan with Particular Focus on Piece Rate Workers

  • Momoe Makino
Part of the IDE-JETRO Series book series (IDE)


When the Multi-fibre Arrangement (MFA) was phased out on 1 January 2005, textile and garment1 exporters in World Trade Organization (WTO) member countries in principle became subject to tough competition in the non-quota market (WTO 1996; Raffaelli 1998; Nordås 2004). Before 2005, there was concern about the possible negative impact of the MFA phase-out in countries such as Bangladesh that believed they were protected by the quota regime (Bhattacharya and Rahman 2001: 9–12). Since January 2005, however, Bangladesh has continued to perform well. There are several explanations for this performance such as: (1) that the effect of MFA phase-out was and still is limited because China agreed to export restrictions on textile and garment products to the US and EU in 2005 (Yamagata 2006),2 (2) that international textile and garment buyers would not import exclusively from China in order to diversify risks (Saxena and Wiebe 2005), or (3) that more time is needed to truly assess the effects of phasing out the MFA.


World Trade Organization Female Worker Wage Level Garment Industry Piece Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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© Institute of Developing Economies (IDE), JETRO 2008

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  • Momoe Makino

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