This brief report is compiled primarily to address the problems of the garment industry in Mongolia. The industry is already affected and is about to be very seriously affected by the removal of preferential quotas in the Multi-Fiber Agreement on 1st January 2005 - just seven weeks away. It has been known for several years that these quotas would be removed in January 2005 and many countries and companies have been preparing for this day. Unfortunately Mongolia is illprepared for this change and the seriousness of the likely effects would appear to have only recently been realised even though there have been several reports on the subject in recent years.