Relax rules of origin for RMG export
BGMEA urges EU
Star Business Report
Garment manufacturers once again have requested the European Union to relax the rules of origin conditions for export of apparels from Bangladesh.Bangladesh Garment Manufac-turers and Exporters Association (BGMEA) President Annisul Huq made the request during a meeting with the EU in dhaka yesterday. The BGMEA president also said due to stiff rules of origin Bangladeshi exporters have failed to gain full benefits offered under the everything but arms (EBA) initiatives of the EU. Responding to the request, European Commission Director General for Trade Andreas Julin said Bangladesh has to workout its strategy to get maximum benefits from new rules of origin which may come into effect by the end of this year or in the beginning of 2005. "The European Union is already working on formulation of new rules of origin under Preferential Trade Arrangements," Julin, who led the EU team, told BGMEA leaders at the meeting. BGMEA also urged the EU to reduce the rate of local value addition at a reasonable level for export of woven garments under Saarc cumulation. Huq also sought global cumulation instead of regional cumulation for RMG export to EU. At the meeting, the BGMEA president informed the delegation Bangladesh exports readymade garments worth $3.17 billion to EU a year. Anne Marchal, first secretary, and Hans Farrhammer, second secretary of the EU delegation in Dhaka, and M Golam Faruq, second vice-president of the BGMEA, were also present at the meeting.
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