Consolidating and accelerating exports in bangladesh
Garment production skills are not very different whether using cotton or man-made fabrics.
But LDC firms, far from their main markets, have to compete directly with the evolving mega companies over "traditional" products.Within supplier countries, there are signs of industry consolidation.Larger companies are increasing production capacity, often on the advice of their major customers.They should also look at the possibilities for technical cooperation between developing countries in these areas.However, LDC exporters selling to other developing countries may experience drawbacks, such as high tariffs (India's or Mexico's average import tariff for textiles and clothing is 35%), unfamiliar market structures and distribution channels, as well as different cultural issues.The end of quotas in the textiles and clothing industry benefits large Asian producers.
Yet other countries also have a stake in the business.
For example, Asian counterparts could help African cotton producers to improve the quality of their cotton and also to find new markets for it in Asia.
Improving trade facilitation services would bring significant gains to LDCs and also increase investor confidence.
The sector plays a major economic role in many least developed countries, especially in Africa, and in other small, vulnerable countries.
To avoid losing important business, their firms need to exploit duty-free advantages to the full, diversify products and expand their supply chains.
Yet, sharper competition is eroding the protected status of LDCs.