Bangladesh pitches for GSP facility with Russia

26 Sep '12

2 min read

Bangladesh, counted among the least developed countries of the world, is exerting to get the generalized system of preference (GSP) facility for its goods, especially readymade garments (RMG), in Russia resumed by next year.

The Government of Bangladesh is trying hard for resumption of GSP facility with Russia by 2013, Dr. SM Saiful Huq, Bangladeshi ambassador to Russian Federation told reporters at the ongoing textile fair in Moscow.

Bangladesh enjoyed GSP facility in Russia till 1997.

Russia’s becoming a member of the World Trade Organization (WTO) in August 2012 has already brought down the duty paid by Bangladeshi garment exporters from 3 percent to 0.7 percent.

The resumption of GSP facility would allow Bangladeshi firms to export their clothing items at zero-duty to the world’s 10th biggest economy.

However, exporters will have to continue paying 18 percent value-added tax, even if the GSP is allowed.

The Russian apparel market is pegged at US$ 6.5 billion and Bangladeshi clothing exporters are looking forward to get a big share, following the slump in European orders due to debt crisis there.

During Bangladeshi fiscal 2011-12 that ended on June 30, 2012, the South Asian country exported RMG worth US$ 183 million to Russia, registering a growth of 90 percent year-on-year.

Fibre2fashion News Desk - India

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