Businesses eye tough contest from China when EU, US withdraw apparel ban

FE Team | Published: September 02, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
President of International Chamber of Commerce-Bangladesh (ICC-B) Mahbubur Rahman Saturday urged all concerned to make allout efforts for not only exploring new markets for apparel export but also diversifying export products.
He noted that Bangladesh with a narrow export basket might face heightened competition as the EU and US restrictions on RMG export from China would be withdrawn from January 1, 2008. In this new competitive scenario, he said, sustaining the current high export growth will be an uphill challenge in the coming years.
The ICC-B president made the observation while inaugurating a day-long ICC workshop on "Incoterms 2000" at the Bangladesh China Friendship Conference Centre organised for commercial executives of RMG (readymade garment) sector and export- oriented industries in collaboration with GTZ, Germany.
He said the country must create an industrial base as a long-term strategy in order to remain competitive. It will help not only export diversification, but also establish a smooth supply chain and control the present price spiral that is seriously affecting the low and middle income groups.
Rahman said the International Commercial Terms (Incoterms) are a set of uniform rules that codify the interpretation of trade terms defining the rights and obligations of both buyer and seller in international transactions where commercial, legal and insurance responsibilities pass from one party to the other.
Incoterms are periodically revised by the ICC. Incoterms 2000 is a revised version of Incoterms 1990, which clearly and accurately reflects trade practice. Incoterms 2000 contains substantive changes that are made in two areas such as the customs clearance and payment of duty obligations as well as the Loading and Unloading obligations.
However, the ICC-B president also said that FDI (foreign direct investment) inflow to Bangladesh declined in the past year and the country was falling behind other developing countries in terms of attracting FDI.
"Diversifying the FDI basket is also emerging as a major challenge," he said.
The ICCB president said the Board of Investment (BOI) has been saying that investment proposals worth billions of dollars have been received. But how much of these, in real terms, are good investment proposals, he questioned.
The BOI needs to change its decision-making procedures and make quick decisions, otherwise, he said, whatever worthwhile proposals that are in the basket will be diverted to other countries.
President of Bangladesh Garment Manufacturer and Exporters Association (BGMEA) Anwar Ul Alam Chowdhury Parvez said that Bangladesh needed to explore new market to increase productivity as well as to sustain its export growth in the competitive world market.
"The manifestation of globalisation has made business more dynamic in nature and competitive advantage-oriented. As a result, liberalisation of trade and providing equal opportunities to disadvantageous economies have been causing growing concerns in the global community," said Mr. Chowdhury.
Mamun Rashid, chairman of ICC-B Standing Committee on Banking Technique and Practice and Managing Director of Citibank N.A., Bangladesh said using Incoterms will save time, money and needless litigation. Incorrect application or outdated use of the terms has contributed to the bulk of disputes involving commercial terms. He, therefore, urged all concerned to read the full text of Incoterms 2000 and ensure that they are applied correctly.
ICC expert on Incoterms from Europe Pavel Andrle, who conducted the workshop, also spoke at the inaugural session. Business leaders including A. S. M. Quasem and Ghaziul Haque also attended the inaugural session.
Some 160 participants from apparel and knitwear sectors are attending the workshop. Besides, the ICC-B will organise two more workshops at the same venue, which will be attended by some 150 bankers, international trade experts, lawyers, importers, exporters, freight forwarders and others on Incoterms 2000 and UCP 600.