Shifting trade preferences and value chain impacts in the Bangladesh textiles and garment industry

Abstract

This article contributes to the debate on the key factors shaping global value chains in the garment sector by focusing on one aspect: namely trade regimes and their related 'rules of origin'. We study Bangladesh, the leading least developed global garment manufacturer, to assess how changes in the European Union's regime for preferential market access affect the trade profile, and upgrading prospects, of Bangladesh's garment industry. We find that shifting trade preferences play a key role in determining structural transformations within the industry. This calls for more careful consideration of trade regimes within GVC analysis.

Does Trade Policy Impact Food and Agriculture Global Value Chain Participation of Sub‐Saharan African Countries?

“…This could represent an incentive for foreign suppliers to move to those countries/sectors to get the benefits of the protection (Blanchard, Bown, and Johnson 2016). Moreover, while the majority of observed protective measures are bilateral, some of them are the result of free trade agreements or customs unions which can affect GVC participation differently, entailing a broader notion of preferential trade regimes, including rules of origins and possible nontariff issues (Curran and Nadvi 2015).…”

“…On the one hand, we may find a positive impact, since RTAs are meant to introduce a broader set of bilateral preferences between members and include possible non-tariff issues such as general regulatory policies (Baier and Bergstrand 2007). On the other hand, this positive impact could be, totally or partially, offset by strict rules of origins (i.e., request for additional domestic stages of production by the importing country), prolonged phasein periods, as well as a high influence of multilateral inputs on foreign value added that do not directly benefit from bilateral preferences (Curran and Nadvi 2015;Blanchard, Bown, and Johnson 2016).…”

Safety Issues of Female Workers of Garment Industry in Gazipur District, Bangladesh

“…After achieving its independence in 1971, the industry that has been making vital contributions in rebuilding the country and its economy, is now the largest export earner of the country (Adnan et al, 2015;Ahmed et al, 2013;Bangladesh Garment Manufacturers and Exporters Association, 2017;Curran and Nadvi, 2015;Farhana et al, 2015;Hasan et al, 2013;Karmaker and Saha, 2016;Mahmud et al, 2017;Sikdar et al, 2014;Wadud et al, 2014). In 2014-2015 the industry in Bangladesh was worth USD 25.49 billion that has experienced sharp increases from around USD 10 billion in 2007-2008to USD 17.91 billion in 2010-2011to USD 19.1 billion in 2011(Bangladesh All Party Parliamentary Group, 2013Bangladesh Garment Manufacturers and Exporters Association, 2017;Mottaleb and Sonobe, 2011;Wadud et al, 2014).…”

“…In 2014-2015 the industry in Bangladesh was worth USD 25.49 billion that has experienced sharp increases from around USD 10 billion in 2007-2008to USD 17.91 billion in 2010-2011to USD 19.1 billion in 2011(Bangladesh All Party Parliamentary Group, 2013Bangladesh Garment Manufacturers and Exporters Association, 2017;Mottaleb and Sonobe, 2011;Wadud et al, 2014). Currently, the industry accounts for approximately 80-81 percent of export earnings of the country (Ahmed et al, 2013;Akterujjaman and Ahmad, 2016;Bangladesh Garment Manufacturers and Exporters Association, 2017;Curran and Nadvi, 2015;Islam and Ahmed, 2014;Islam and Liang, 2012;Stotz and Kane, 2015;Theuws et al, 2013). The main reason for this explosive growth of the garment industry in Bangladesh is easily available cheap labor (Stotz and Kane, 2015).…”

Health Issues of Female Garment Workers: Evidence from Bangladesh

“…Over the last couple of decades, the readymade garment industry in Bangladesh has experienced exceptional growth and unlike many other industries in the country never witnessed any major setback. The industry that has been making crucial contributions to the country's economy after gaining its independence in 1971, is now the single biggest export earner of the country (Bangladesh Garment Manufacturers and Exporters Association [BGMEA], 2017; Curran & Nadvi, 2015;Wadud, Huda & Ahmed, 2014). The garment industry which was established in the 1980s soon outdistanced the only major export earner workplace condition and health status of the workers.…”