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.

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