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US envoy raises concern about sourcing RMG from Bangladesh
12
Jul '12
Mr. Dan W Mozena, the US Ambassador to Bangladesh, has voiced concern that several US firms, interested in buying readymade garments (RMG) from Bangladesh are cautious about placing orders with Bangladeshi firms, following the killing of a garment workers’ union leader in April this year.
 
Speaking at a press meet, the US envoy said the US-based firms would certainly not put their reputation at stake. He said the US firms are willing to procure apparel items from Bangladesh, but are concerned regarding the labour issues, workplace safety and freedom of association in Bangladesh, he added.
 
The US envoy said the labour issue and assassination of garment union leader Aminul Islam in April this year are matters of serious concern and great annoyance, and the American Federation of Labor and Congress of Industrial Organisations (AFL-CIO) lodged a petition with the US authorities seeking withdrawal of GSP facilities granted to Bangladesh.
 
The GSP facilities allow Bangladesh to export its clothing items duty-free or at preferential rates to the US.
 
Mr. Mozena forewarned that if the petition goes against Bangladesh it would adversely impact the trade and investment coming into the country, which is already suffering due to factors like lack of proper infrastructure, strikes and corruption, which are impeding trade and investment.
 
Regarding inking of the Trade and Investment Cooperation Forum Agreement (TICFA) with Bangladesh, the envoy said the forum would mainly work to identify and solve the problems coming in way of increasing mutual trade and investment between the two countries. He added that TICFA would prove to be mutually beneficial for both the countries.
 

Fibre2fashion News Desk - India

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