Home / Knowledge / News / Apparel/Garments / Bangladesh requests Clinton for duty-free RMG exports

Bangladesh requests Clinton for duty-free RMG exports

07
May '12
As US Secretary of State Hillary Clinton paid a two-day visit to Bangladesh, the country sought resolution of some key pending issues like duty-free access for its readymade garments (RMG) in US, Generalised System of Preferences (GSP) status and finalization and quick implementation of Trade and Investment Cooperation Framework Agreement (TICFA) to further boost trade between the two economies.

During their meeting with Ms. Clinton, Nobel laureate Professor Muhammad Yunus and Sir Fazle Hasan Abed, Chairperson of BRAC, which is counted among the world's leading Non-Government Organizations (NGOs), requested the US Secretary of State to allow Bangladesh to export garments at zero-duty to the US market.

The duo said that such a step would help in generation of more employment opportunities in the country, especially for women.

Prof. Yunus said if Bangladeshi garments get duty-free access to the US, it would boost employment of women in the country.

Presently, around 97 percent of Bangladesh's exports to the US enjoy duty-free access to the US, but this does not include garments, one of the country's key export items.

Since US happens to be the sole largest destination for Bangladeshi apparel exports, it is seeking a prompt resolution of the long-pending issue.

Garments and textiles constitute about 90 percent of Bangladesh's exports to the US, while jute items, raw jute, agro-products, leather, chemical products, etc. constitute the rest.

While China, world's biggest apparel supplier, needs to pay only 3 percent duty, Bangladesh's RMG exports to the US are subjected to a 15.3 percent levy, and that is in spite of it being a least developed country.

Renewing the GSP scheme for the least developed countries on September 22 last year, the Obama administration permitted duty-free access of around 4,800 items from 131 countries to the US. However, this has not much benefited Bangladesh, as it is not a big producer of the items included in the list. Garments, Bangladesh top export item, is not included in the list.

Further, in January this year, the US Government excluded Bangladesh-made sleeping bags from the list of GSP stating it to be detrimental to its domestic industry. Bangladesh has lodged an appeal against this decision, and the matter is pending.

Bangladesh each year pays over US$ 600 in duty to the US, which is almost at par with the annual aid it receives from the US.

As per the figures of the American Chamber of Commerce in Bangladesh, the country last year exported goods worth US$ 4.59 billion to the US, while it imported items worth US$ 1.09 billion.

China's exports to the US for the same period were valued at US$ 377.33 billion.

Bangladesh presently enjoys duty-free access to Japan and the EU, two of the developed trade blocs. The US also has to grant it a similar facility under the Doha Round of 2001, as it is a least developed country.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 26th Feb 2020

Turkey's textile industry employs 1.67 mn: minister

Turkey's textile and garment industry currently employs around 1.67...

Pic: UNCTAD

Textiles | On 26th Feb 2020

Barbados unveils one-stop investment guide

As Barbados prepares to host the 15th quadrennial conference of the...

Pic: ModCloth

Retail | On 26th Feb 2020

Go Global Retail acquires ModCloth; Tiger Capital finances

With financing provided by Tiger Capital Group, Los Angeles-based...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Technical textiles industry moving back to Europe

Top executives, Machinery Company

Top executives
Machinery Company

We will promote latest technologies at ITMA Barcelona

Smita Murarka, Amanté

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Sham Shah,

Sham Shah

Shamal and Shamal Pvt Ltd is into manufacturing and sales of textile...

Jash Choraria,

Jash Choraria

Established in 2015 by <b>Jash Choraria</b>, Unifynd is a Mumbai-based...

Farheen B Rahman & Priti Jain,

Farheen B Rahman & Priti Jain

Founded by business-designer duo <b>Priti Jain and Farheen Rahman</b>,...

Steve McCullough & Marco Weichert, Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Functional Fabric Fair is a trade-exclusive event showcasing the latest...

Chunyi Zhi, City University of Hong Kong

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Prof Seokheun (Sean) Choi, Binghamton University, State University of New York (SUNY)

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

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


Advanced Search