US envoy links Bangladesh duty-free RMG exports to TICFA

17 Apr '12

2 min read

Duty-free access for Bangladesh's readymade garment (RMG) exports to the US market would depend on the Trade and Investment Cooperation Framework Agreement (TICFA) that may be signed at a later date between the two countries, Dan W Mozena, US Ambassador to Bangladesh, has said.

Speaking at a discussion on US-Bangladesh Trade Relations, Ambassador Mozena said a bilateral TICFA between the two countries is likely to conclude soon.

He said the demand for duty-free exports of Bangladeshi garment items to the US is a very valid one, and the conclusion of TICFA would provide a platform to identify obstacles and work for accelerating bilateral trade and investment between the two countries.

About 97 percent of all Bangladeshi export items enter the US duty-free. However, apparels, which are Bangladesh's main export item, attract over 15 percent duty to get into the US market.

Hence, Bangladesh has been demanding zero-duty access for its RMG products, which face stiff competition from India, Pakistan and China.

Bangladesh exported US$ 5.1 billion worth of goods to the US in fiscal 2010-11, 90 percent of which were RMG items. During the same period, US exports to Bangladesh were worth US$ 676 million.

TICFA is a redesigned version of the Trade and Investment Framework Agreement (TIFA), which failed to materialize between the two countries.

Fibre2fashion News Desk - India

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