One of the major
changes that is likely to be permitted in case of several RMG units is
that, they can go for single-stage processing or manufacturing
readymade garments directly from fabric in place of the two-stage
processing, where the manufacturing starts from the yarn stage and
passes through the fabric stage to reach the ultimate product.Most of the garment items, exported from LDCs, are likely to enjoy duty-free access to the European Union..Once the new rules of
origin are enforced, the exporters, using the imported fabrics for
producing readymade garments in Bangladesh and then exporting them to
the European Union, are likely to avail the GSP benefits..

A large number of woven apparel exporters import the required fabric
from China as the backward linkage sector is not as dominant as the
knitwear sector. The backward linkage sector within the country is
expected to confront some competition as many producers of readymade
garments import the fabrics from countries like China”.