Lack of competitiveness may hit country's RMG exports
19 Apr '06
3 min read
More than half of its 500 RMG items are presently being imported at normal 14 percent duty payment that require entry in to the US.
Bangladesh will make all efforts to derive maximum advantage out of the Geneva negotiations, now an extension of the Hong Kong ministerial, although it will be a tough proposition.
Officials said Bangladesh would favour a slow going tariff reduction, particularly under the textile regime by the developed countries, which will fundamentally boost others competitiveness at the cost of Bangladesh's exports.
A source said, only a zero tariff will serve Bangladesh's interest keeping the duty arrangement high for developing countries as preference of erosion, would affect Bangladesh in the form of switching buyers to third country.
Dhaka may opt for an arrangement with the US to permit certain volume under duty free and rest of the products for exports on payment of duty for excepting for all RMG items that may not be covered under the purview of the 97 percent list for duty free access.
Out of 30 nations (OECD) group, 28 do not object to 100 percent duty free market access for all products originating from all LDCs.
The EU is already offering it to the poorer nations under everything but arms GSP schemes.
Only a lower requirement of value addition can increase and multiply LDCs export to benefit from greater trade facilitation schemes, sources added.
marketing@alchempro.com
