Home / Knowledge / News / Textiles / EU's revised RoO vexes fabrics makers in Bangladesh
EU's revised RoO vexes fabrics makers in Bangladesh
Apr '11
The Bangladeshi textile industry is hit by the EU's move of relaxing the rules of origin (RoO) for the least developed countries (LDCs) like Bangladesh.

At this time it has been suggested that the domestic fabric manufacturers in Bangladesh should raise their productivity, enhance quality of their products and improve production efficiency to offset the adverse effects of the EU's move on the sector.

EU's new RoO which came into effect from January 1, 2011 has granted clothing exporters of the LDCs, duty-free access to the 27 EU nations, even if they buy fabric from other countries.

With this relaxation, the garment manufacturers from Bangladesh started importing fabrics from other countries like China, at a price lesser that what they would have been required to pay if they would have purchased the same from local markets.

Owing to this, RMG exports to the EU grew sharply during the first quarter of the current year, but the move has adversely impacted the sales of local fabrics, particularly woven fabrics.

A majority of garment makers do not prefer purchasing fabrics from the domestic suppliers, and are importing the same at cheaper rates from foreign countries, which is not allowing the domestic fabric industry to grow at a higher pace.

The earlier RoO for years together,r served as a protective cover for the domestic textile industry, as it necessitated the garment exporters to source major part of the fabrics from the local textile units, if they wished to enjoy the duty-free access to the EU.

However, it is to be understood that, no industry could be shielded for time immortal. Though Bangladesh's backward linkage industry has been shielded for years together since 1990s, and hence now it is the time for the industry to gain self-reliance and get competitive.

It is believed that, when they would start drawing competitive rates for their products, the garment producers in the country would start buying fabrics from the domestic producers. Thus, the local fabric producers need to raise their productivity, boost efficiency and enhance the quality of their products to cash in on the opportunity.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 18th Feb 2017

Bangladesh apparel sector has 95% local investors: BGMEA

Over 95 per cent of the total investors in the Bangladesh apparel...

Textiles | On 18th Feb 2017

Smriti Irani resolves cutting of carpets issue at ports

During a meeting held with stake holders of the carpet weaving...

Apparel/Garments | On 18th Feb 2017

Andhra Pradesh inks MoUs to set up 12 apparel units

At the recent CII Partnership Summit held in Hyderabad, memorandum of ...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search