US move to scrap GSP unfair, discriminatory, says Muhith

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FE Report The move to revoke the Generalised System of Preference (GSP) facility for Bangladeshi products in the US market is utterly illogical and unjust, Finance Minister AMA Muhith said on Saturday. He urged the US administration to provide duty and quota-free market access to the Bangladeshi apparels. Mr Muhith wanted the US government to end its, what he said, discrimination towards 'made-in -Bangladesh' products and not to issue threat for scrapping the existing GSP facility. "It is utterly illogical, unjust and unfair to scrap the GSP facility (in the US market). You can use as many adjectives as you want against this withdrawal threat," he said. The finance minister made the remarks during a pre-budget meeting with the leaders of International Business Forum of Bangladesh (IBFB) at the Secretariat in Dhaka. He said the US is not providing duty-free facility to apparel items originating from Bangladesh on the ground that other least developed countries (LDCs) might be affected as a consequence. Mr Muhith said the Bangladeshi apparels are subject to 24 per cent import duty in the US market as against five per cent they levy on garment and fabrics imported from France. "Is this justified", questioned Mr Muhith. Urging the IBFB leaders who will be visiting the USA shortly, the finance minister said they must raise the issue with the US authorities. "Please tell them - at higher level and business level. I always tell this. But ours has less importance." The finance minister said ready-made garment (RMG) is now a 'fantastic' and integrated industry making its position as the second largest exporter in the globe after China. Mr Muhith also said the industry has developed into an integrated industry over the last 30 years and it is maintaining very good standard and earning very good revenue. "So, it is in its own interest the world needs to keep this industry in Bangladesh alive." Regarding the frequency of accidents in the RMG industry, he asked how many accidents took place before the last two accidents. "You examine the statistics. It is fantastically good," he said. Mr Muhith claimed that the last accident before the latest two major accidents had happened sometime in 1990s. Explaining the steps the government has taken, he said for the first time, it, a few days before the Rana Plaza is collapse, formed a Cabinet committee to survey all the factories and find out the defects. "The Cabinet committee has been asked to complete the task within three months including identification of errors and corrective measures," Mr Muhith said. The IBFB leaders sought rationalisation of bank interest rates, which they consider as very high, have been hindering industrialisation in the country as well as generation of more revenues. They also proposed to discourage import of goods and services that are already available locally and thus protect the domestic industries. Founder President of IBFB Mahmudul Islam Chowdhury, IBFB President Hafizur Rahman, IBFB Chittagong Chapter chairperson M Sakhawat Hossain, Executive Director M Abdus Salam, Deputy Managing Director of Abdul Monem Ltd A.S.M. Mainuddin Monem and Bangla Phone Director Lutfunnisa Saudia Khan were, among others, present.