"Simplified rules of origin to the EU market can save the RMG industry after MFA (multi-fibre arrangement) phaseout," Annisul Huq, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said.

He sought policy support from the government in setting up a central bonded warehouse for garment exporters, and reduction of lead-time, port related charges and bank rates to face the post-MFA challenges.

Commerce Minister Altaf Hossain Choudhury however told the discussion that the government is continuing negotiations with developed and developing countries to get duty and quota free market access for RMG products.

"We are aware of the possible consequences of quota phaseout in the export market after 2004… Duty and quota free access to a number of countries can be a good solution to this problem," the minister said.

The discussion was held after a presentation on 'Stitched Up: How Northern Protectionism in Textiles and Clothing Trade prevents Poverty Alleviation' by Oxfam GB, Bangladesh Programme, at Cirdap auditorium.

The commerce minister said due to duty and quota free access of Bangladeshi RMG products, export to Canada has gone up by 140 percent during the first nine months of the current fiscal over the same period of last year.

He hoped Bangladesh's export market in the European Union (EU) may be expanded as 10 more countries joined the bloc this month.

The minister suggested setting up of workers' skill upgradation centres where workers can improve their quality. He also proposed establishment of 'job bank' to provide a source of labour for any garment factory that needs workers.

In the presentation, Oxfam suggested reduction in tariffs on textiles and clothing imports for manufacturing finished products by 2010 through WTO negotiations.

Mustafizur Rahman, research director of the Centre for Policy Dialogue, chaired the meeting.