A safeguard investigation related to import of apparel products recently initiated by Indonesia may negatively affect Bangladesh’s export of the products to the Southeast Asian nation. The former initiated the probe following a petition by the Indonesia Textile Association to the Indonesian Safeguards Committee under the ministry of trade.
The committee has notified the issue to the World Trade Organisation.A safeguard investigation related to import of apparel products recently initiated by Indonesia may negatively affect Bangladesh's export of the products to the Southeast Asian nation. The former initiated the probe following a petition by the Indonesia Textile Association to the Indonesian Safeguards Committee under the ministry of trade.#
The move comes at a time when both Bangladesh and Indonesia are in negotiations to sign a preferential trade agreement (PTA). The next round of negotiations will be held on October 21-22.
According to trade experts and exporters in Bangladesh, the latest development may affect the negotiation process as well as Bangladesh’s export to the country if Indonesia imposes any safeguard duty after the investigation is over, a Dhaka-based newspaper reported.
Bangladesh in the last fiscal year 2019-2020 exported readymade garment products worth $27.91 million to Indonesia, which is more than 54 per cent of the country’s total export of worth $51.42 million to Indonesia.
Of the $27.91 million, the value of knitwear products export was $14.48 million and the amount of woven export was $13.44 million, according to data from Bangladesh Export Promotion Bureau.
A safeguards investigation seeks to determine whether increased imports of a product are causing, or is threatening to cause, serious injury to a domestic industry.
The products that fall under the investigation include overcoats, suits, shirts, blouses, t-shirts, singlets and other vests, jerseys, pullovers, cardigans, babies’ garments and clothing accessories, other made up clothing or parts of garments, jackets, blazers, trousers and some other items.
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