Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 456 Tue. September 06, 2005  
   
Business


Duty-free access to US must for RMG survival
BGMEA tells press meet


As local woven exporters are facing difficulties to comply with the rules of origin (RoO) for availing generalised system of preferences (GSPs) in the EU market, an immediate duty-free access to the US market is the only way for survival of the country's garment industry.

Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said this in Dhaka yesterday at a press meet with the members of Overseas Correspondents Association of Bangladesh (OCAB).

"Country's textile industries can meet less than 20 percent of the requirement of the woven garment exporters and the prices are also high," said BGMEA President Annisul Huq.

"So, many of the woven RMG exporters are unable to conform with the RoO and fail to avail the GSP, resulting in the fall in woven export," Huq said.

Against this backdrop, an immediate duty-free access to the US market is needed for the survival of Bangladesh RMG industry, he added.

According to the official figure, export of woven garment fell by 19.61 percent in January-June period this year as export earnings were $802.84 million from the EU market against $998.70 million in the same period of the last year.

On the other hand, export of woven garment shot up by 18.95 percent to the US market in January-June period this year with earnings of $851.60 million, which were $715.96 million in the same period of the last year.

"We are putting maximum efforts to gain duty-free access to the US by moving a bill titled 'The Tariff Relief Assistance for Developing Economies' in the congress," Huq said.

"It is a long and tough process, but we are confident that we will achieve that," the BGMEA president hoped.

He also urged the OCAB members to highlight the upcoming BATEXPO-2005 beginning on September 29 in the foreign media.

Woven accounts for 56 percent of the country's total textile export whereas knitwear accounts the rest.