Committed to PEOPLE'S RIGHT TO KNOW
Vol. 4 Num 283 Mon. March 15, 2004  
   
Business


Post-MFA challenges
Invest in infrastructure to rescue RMG
Speakers tell workshop


Bangladesh needs to invest more in infrastructure and backward linkage industry to help readymade garments face post-MFA (multi-fibre arrangement) challenges, speakers observed at a workshop in Dhaka yesterday.

Investments in port, communications, utility services and backward linkage industry will give a boost to the apparel sector, which accounts for over 75 percent export of Bangladesh, they said.

According to the American Textile Manufacturers Institute, Bangladesh is feared to lose RMG business worth over one billion US dollars to China from January to June this year due to lead time problem and poor competitiveness, they said.

They were speaking at a two-day workshop on "Post-Cancun Developments in the WTO and Business Implications for Bangladesh" jointly organised by Dhaka Chamber of Commerce and Industry (DCCI), International Trade Centre of UNCTAD (United Nations Conference on Trade and Development) and European Union.

In the global market, share of Chinese apparels rose to 53 percent in June 2003 from nine percent in 2001. US imports from China during first six months in 2003 increased by 175 percent.

Addressing the opening session, ASM Quasem, vice-president of International Chamber of Commerce-Bangladesh (ICC-B), said China, India and Thailand would be major competitors of Bangladesh in the quota-free era.

After the removal of import restrictions on five categories of products in January 2001, world imports to the US have increased by 28.8 percent while Chinese export increased by 366 percent in those categories.

As WTO negotiation process resumes, Quasem said the government should increase representation from private sector in the talks.

In the context of fall out of Cancun Conference last year, Anne Marchal, first secretary of the Delegation of the European Commission to Bangladesh, said all the parties concerned should look into the problems identified in Cancun to find out solutions.

"If the WTO members want to re-launch the stalled talks, major efforts from all sides are required," she said.

Xuejun Jiang, senior trade promotion officer of ITC, UNCTAD, said as the government cannot pursue effective negotiations without the support from businesspeople, the ITC provides assistance to entrepreneurs by strengthening their capacity.

In his speech, Acting President of DCCI AM Mubash-Shar said, "We need capacity building to meet international standards, obtain appropriate technology, conduct market research and develop products to increase market share."

Four consultants of ITC of UNCTAD -- Shyam Kumar Gujdhur, Silencer Mapuranga, Rupa Ganguli and Peter Gallagher -- are conducting workshop that ends today.