The Report discusses the general trend in Asia’s share of US and EU imports of textiles and clothing (T&C) products; deals with some of policy concerns emanating from the recent development in the T&C trade; analyses successful case studies from three countries (Cambodia, Sri Lanka, Thailand) to overcome the challenges posed by the phasing out of T&C quotas; tries to draw key lessons for other developing countries as well as LDCs; and concludes the discussions and provides recommendations on the way forward.