The fallout from the ending of quotas will result in Bangladesh, Pakistan, Sri Lanka, Cambodia and Mauritius losing $1.32 billion a year to countries such as China and India a new Commonwealth study has shown.

A total of 21 developing countries will be affected by free-trade agreements that reduce their quotas on a range of export categories including textiles and clothing according to the study quoted by Bloomberg.

The nations - the majority of which were created out of the former British Empire - have in the past relied upon protected exports of products to the EU, the US, Canada and Japan, but could lose around $1.72 billion a year now quotas have been reduced.

According to The United Nations Development Program, Bangladesh lost 500,000-one million jobs when WTO quotas were gradually halved between 1995 and 2002. The country's textile and clothing shipments dipped 41 per cent to the US and 46 per cent to the EU.

Sri Lanka, another country depending heavily on textiles and clothing exports, saw exports to the US fall 51 per cent and 21 per cent to the EU during the transition.

The EU last week said it would provide a minimum of €12.5 billion to help 77 ex-colonies, but there remains controversy over what the financial help should be used for.