Lack of competitiveness may hit country's RMG exports
19 Apr '06
3 min read
Inspite of large access of the US market for products from Bangladesh in the aftermath of the WTO Hong Kong ministerial, the country's garment export have deteriorated due to lack of competitiveness.
Due to the obligation of textile safeguard measures (TSM) by the USA on cheaper Chinese exports, the readymade garments (RMG) export to the USA, which had dwindled in 2001, is showing an upward trend since 2003.
Robert Portman, US Trade Representative claimed at the Hong Kong ministerial conference that Bangladesh is not an exceptionally spirited country in RMG export.
China's RMG export to the USA grew at an average of 8 percent from 2001 till 2005 when measures against Chinese export were implemented that its exports grew even stronger by 21 percent against all hurdles.
RMG export from Bangladesh surprisingly, could not withstand Chinese competition, hence the US government provided special support in the form of duty free and quota free market access to Bangladesh.
In this backdrop, Commerce Ministry officials stated that at the Geneva discussions now developing, Bangladesh will make all attempts to ensure that all export items already enjoying duty free access to the USA should continue to enjoy the benefits and the rest should be earmarked under the 3 percent negative list.
Bangladesh will persuade to include all chief export items under duty free access in the 97 percent eligibility list as it is obvious the USA may try to put some RMG items under the exclusion list.
However, the administration under the Hong Kong offer will allow over 1500 items from Bangladesh at duty free, after adjusting the discount of items under the 3 percent negative list.
marketing@alchempro.com
