Apparel Online Bangladesh Magazine November Issue 2018 | Page 34

BANGLADESH CANVAS
Drop duty on apparels made from US
cotton: B'desh urges America
Bangladesh’s apparel
manufacturers have placed a new
proposal asking the US to give duty-
free access to the apparel items
made out of US-grown cotton and
produced in Bangladesh.
The proposal was placed by
Bangladesh Garment Manufacturers
and Exporters Association
(BGMEA) during a farewell
programme felicitated to outgoing
US Ambassador in Dhaka
Marcia Bernicat at BGMEA
Complex, recently.
“We use a lot of US cotton to make
garments and a significant part
of those are shipped back to the
US. If we get duty-free access for
garments made of US cotton,
I think this will be a win-win
situation for us, for the US cotton
growers and for the US consumers
who will get products at a cheaper
price,” said BGMEA President
Siddiqur Rahman.
“So I would request you to kindly
discuss this issue with your
Government for consideration, and
would appreciate a response and
your further guidance,” he added. Also, Bangladesh has had age-old
fumigation rules on the import of
US-made commodity in Bangladesh,
including cotton – which has
contributed to the Western country’s
low market share in Bangladesh’s
cotton market. Insiders blame such
policies, distance between the two
countries and the congestion at
Chittagong port as major hurdles
for increasing US cotton shipment
to Bangladesh.
Notably, Bangladesh is the largest
importer of cotton in the world –
with more than seven million bales
of import last year – which heavily
relies on supply of the natural fibres
from neighbouring India.
The United States, the world’s
largest exporter of cotton,
has a small share in this huge
Bangladeshi cotton market. It is a known fact that Bangladesh’s
apparel industry is heavily reliant
on cotton as a natural fibre. Though
there is no correct estimate as to
how much the production is reliant
on cotton, insiders say the amount
can reach as high as 82 per cent.
This has also labelled Bangladesh
as a country sourcing cotton-made
apparel items internationally.
Apparel makers seek duty-free access in Thai market
Bangladesh’s apparel
manufacturers have called upon
Thailand to allow duty-free
access for garment products and
invest in the country’s readymade
garments industry.
The request was recently made
to the visiting high-powered
delegation of Thai businessmen
with the view to boost apparel
business with an aim of US $ 50
billion target by 2021.
The 15-member Thailand
delegation called upon officials
of Bangladesh Garment
Manufacturers and Exporters’
Association (BGMEA) at
BGMEA Complex, Dhaka, to
discuss bilateral trade issues.
Manu Sithiprasasana,
Deputy Executive Director
(Administration), International
Institute for Trade and
Development (ITD), led the Thai
delegation. From Bangladesh side,
BGMEA Senior Vice-President
Faruque Hassan and Vice-
President (Finance) Mohammed
Nasir were present. AHM
Shafiquzzaman, Joint Secretary
of the Commerce Ministry, also
marked the event.
Faruque Hassan emphasised
on the importance of regional
cooperation and intra-regional
business. While stressing on
the need for a more cooperated
regional trading, he also said that
Bangladesh is currently an ideal
place for investment.
Mohammed Nasir highlighted the
green revolution of Bangladesh’s
apparel sector and the tangible
transformation the country has
achieved over the past years to
gain confidence of having some of
the most compliant factories.
He said Bangladesh’s apparel
makers and exporters
were interested in exporting
garment items to Thailand. He
requested Thailand, via the
business delegation, to consider a
duty-free access for Bangladesh’s
garment products. He also called
upon the business delegation to
invest in Bangladesh’s apparel
sector – especially in synthetic
yarn and fabrics.
The visiting Thailand delegation
lauded the developments achieved
in Bangladesh’s readymade
garment sector. They informed
34 Apparel Online Bangladesh | November 2018 | www.apparelresources.com
BGMEA that they visited
Bangladesh to understand first-
hand its climate of business,
expansion and investment.
Commerce Ministry’s Additional
Secretary Shafiquzzaman said,
Bangladesh Government believes
this tour of Thai delegation has
ushered in a new era of bilateral
business expansion between the
two countries. He urged all to
seize the opportunity and make
the most out of it.