On the other hand, there will be a sharp rise in textile exports from India and China after the abolition of the quota system.

The report, released here recently, calls on developed countries to slash import duties on textiles and clothing to four percent by 2010 to help the LDCs cope with the quota-free regime.

The average tariffs on textile and clothing in developed countries is 12 percent as against only four percent in the case of other manufactured goods, says the report adding the peak tariffs often reach as high as 40 percent for certain categories.

The United States exchequer earns as much as 331 million dollars through import duty on textiles and garments from a country like Bangladesh, according to the report.

On the other hand, Norway, which exports a far higher volume of goods including highly sophisticated manufactured goods, gives a revenue of just 24 million dollars to the US because of much lower import duties, says the report.

The Oxfam report says the developed countries charge three times more import tariffs on textile and garments than on other manufactured goods. This is "blatant discrimination", it adds.

Oxfam GB trade policy advisor Samar Verma says the developed countries must give greater market access to help those who stand to lose from quota-free system.

He said a quota-free textile international trade does not automatically guarantee free trade in the sector as other non-tariff barriers would come into play.

According to Verma, the quota system under the Multi Fibre Agreement (MFA) and prevalence of high import tariffs in developed countries deprived developing countries trade worth 40 billion dollars and 27 million jobs.

The US and European Union have a set of non-tariff measures to protect their own industries, including imposition of anti-dumping duty besides anti-subsidy provisions of the WTO to scuttle competitive imports from developing countries, he says.

Secondly, the rich countries' use of "rules of origin" and insistence that imported goods are sourced from the country actually exporting them put countries like Bangladesh at a disadvantage because they import their fabric and yarns from other countries for manufacturing garments for export, Verma adds.

India and China are likely to be the main beneficiaries of the end of quota-system in textile and clothing trade, he says adding that India is perhaps the only county which has an integrated supply chain in this sector including raw cotton, silk and man-made fibre.

But even India may have to face difficulties like regulations relating to testing and labeling.

Textile and clothing industry in India contributes five percent of GDP, fetches one third of total foreign exchange earning and provides direct and indirect employment to 35 million people, Verma says.