“On the basis of the two PM's (India and Bangladesh) meeting last year, Bangladesh had requested to reduce this trade imbalance, which has been also in the agenda this time too, “informs Mr Hassan.
In stance of Mr Hassan, basically India will be more benefited by this new resolution of quota because from 1st Jan EU has given privilege to Bangladesh by allowing all shipments to EU to be single-stage processing (manufacture from fabric) for LDCs (least Developed countries) instead of the two stages of processing (manufacture from yarn) required by the previous rules. That means clothes made in Bangladesh from January 2011 will have duty-free access to the EU market even if they are made of imported fabrics. Duty in the EU market on woven and knit RMG is on average 12% and 12.5% respectively.
“Consequently we have started using lots of Indian fabric and hence demand for Indian fabric will increase in Bangladesh and ultimately more Indian fabric will be exported to Bangladesh from India, “explains he.
Border Haats has also been vital topic in the discussion. Indian Commerce Minister, Mr Anand Sharma was reported to be also declaring about agreement by both nations on forming a joint group that would on regular basis review the border infrastructure for enhancing trade. Therein he also mentioned that Border Haats (informal markets) in Meghalaya are likely to be ready in two months time.
Fibre2fashion News Desk - India
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