BKMEA seeks govt support to face post-MFA era
Demands emergency WTO meeting on the issue
Star Business Report
Knitwear manufacturers have urged the government to pressurise the international lobby for calling an emergency meeting of the WTO (World Trade Organisation) to find out solutions to face the challenges of quota-free regime after this year."We want the meeting to also find out a way to control the Chinese 'foul play' in the world textile and apparel trade," said Fazlul Hoque, president of Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA). He said though Bangladeshi exporters have already proved that they are capable of facing the challenges of post-MFA (multi-fibre arrangement) era, they are in fear of the Chinese control in the world textile and clothing trade. The WTO meeting could also allow an extension of the quota system or develop a new system or devise other mechanisms to face the challenges, the BKMEA chief said addressing a press conference at Dhaka Sheraton Hotel yesterday. He also urged the government to reopen the Benapole land port for importing yarn, which will only be used in the export processing of knitwear sector. The government banned import of yarn through Benapole land port following allegation of smuggling during commercial import, but Fazlul Hoque claimed most of such illegal activities took place at the Burimari border. Presently, average price of a kg of yarn in Bangladesh is US$ 2.80 while the price is $2.30 in India but the Indian exporters can buy it at a price of $2.10. As a result, production cost of a T-shirt in Bangladesh is 20 percent higher than that in India. "If such situation continues, very soon we will lose international market. We have already lost a number of international buyers," the BKMEA president said. "We want government's policy support, not financial support, to overcome these challenges," he said adding, "If the government provides necessary support we can achieve 40 percent export growth." He also said the government should sit with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Textile Mills Association (BTMA) and BKMEA to discuss the post-MFA issue. Habibur Rahman, first vice-president of BKMEA, Abu Ahmed Siddiqi, second vice-president, Abdur Rashed, third vice-president, and Abdur Rahman, vice-president (finance) of BKMEA, were present at the press briefing. Knitwear sector in the first ten months of this financial year fetched $1669 million, which is 25.68 percent more than the targeted amount. In the last financial year the sector earned $1653.83 million from export, which is one-fourth of the total export earning.
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