Abu Sadat Muhammad Sayem, Md. Shamsul Haque, Md. Kamal Uddin

ABSTRACT

China is the prime beneficiary of the quota removal after 2004 and has taken the lion share of the market pie in the EU clothing market. This eventually becomes a threat for the orderly development of the market. In order to mitigate the disrupt impact of this liberalization; EU limited the import of ten product categories from China till 31th December 2007. This EU safeguard measure against China believed to provide some additional export opportunities for many countries. Thus the removal of this safeguard is considered as a headache for those ‘third’ countries. The study shows that the removal of the EU safeguard measure against China will put the LDCs into a strong competition where they might find it tough to survive. A set of recommendation is made mainly for Bangladesh but the similar recommendations can be interpreted for other LDCs based on the prevailing situation of their apparel industry.