Bangladesh's clothing industry until now brilliantly survived the phasing-out of textile quotas, according to a report by the World Trade Organisation (WTO). In the period preceding quotas' elimination, Bangladesh was expected to face difficulties, as a result of surging competition from China.

In sharp contrast, the country was able overcome the new threat that was later weakened after the United States and the European Union re-imposed limits on shipments from China. In its Trade Policy Review, the WTO praised Bangladeshi authorities for supporting the domestic apparel industry in the past years. Bangladesh was also offered a decisive support from EU's duty-free access, granted under the Everything But Arms (EBA) provision of its GSP program.

The share in shipments to the European Union significantly rose when compared with exports to the United States. At that time, Washington did not yet offer a duty-free access to Bangladesh, the US preferential treatment and free trade agreements benefited other countries, on the contrary, with more competition for Bangladeshi products on the US apparel market. US imports from Bangladesh were up 16.68% in volume terms in the first seven months of the year 2007 after increasing by nearly 20% in 2005.