SUMMARY:
USA is the world largest knitwear importer with US $ 36 billions import in 2007. Knitwear follows significant growth in the USA market. T-shirt and sweater are the top import items of USA. Although conditions are viable and not very much difficult to meet, exporters find high tariff rates as the main barrier in expanding exports. Equal tariff restriction applies for major competitors. Bangladesh has a comparative advantage over China in cotton items and the price of Bangladeshi knitwear is much lower than that of China and India. China could not remain competitive further because of higher production costs. USA may not likely to import more from China to protect domestic inflation. Bangladesh can be the benefited because of emerging change in sourcing pattern of textiles trade.