Interviews
GSP meets unfavorable reactions from textile sector
12 Dec '07
2 min read
EU is the largest market for the export products of Bangladesh importing nearly 54 percent of its goods and generating a considerable trade surplus for Bangladesh every year. This apart, Bangladesh is recognized as one of the significant exporters from the group of Least Developed Countries (LDCs).
Over the years, export of knitwear and woven goods to EU has shown a steady growth. Besides, the duty free exports by Bangladesh to the EU market have further reinforced trade relations between the two regions.
However, in a recent meeting held between Bangladesh Textile Mills Association (BTMA) and EU officials it was concluded that duty free access to EU markets will be fostered only if 30 percent of the exports were made from locally produced cloth and yarn.
Although, garment manufacturers have supported the proposal, there are a few who believe that 30 percent is too high a percentage for valued added content. Moreover, unable to meet the conditions can also reduce the competitiveness of the domestic industry in the world market since Vietnam is the only cloth and yarn producing country among LDCs apart from Bangladesh.
In fact, if the present proposed General System of Preference (GSP) is agreed upon, local investors may not have the potential to invest such a huge amount in the textile industry to meet the conditions.
Over the years, export of knitwear and woven goods to EU has shown a steady growth. Besides, the duty free exports by Bangladesh to the EU market have further reinforced trade relations between the two regions.
However, in a recent meeting held between Bangladesh Textile Mills Association (BTMA) and EU officials it was concluded that duty free access to EU markets will be fostered only if 30 percent of the exports were made from locally produced cloth and yarn.
Although, garment manufacturers have supported the proposal, there are a few who believe that 30 percent is too high a percentage for valued added content. Moreover, unable to meet the conditions can also reduce the competitiveness of the domestic industry in the world market since Vietnam is the only cloth and yarn producing country among LDCs apart from Bangladesh.
In fact, if the present proposed General System of Preference (GSP) is agreed upon, local investors may not have the potential to invest such a huge amount in the textile industry to meet the conditions.
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
