MoU with India soon on export of 8m pieces of garments

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FE Report
The government is likely to sign a memorandum of understanding (MoU) with India soon on export of eight million pieces of apparel items under South Asian Free Trade Agreement (SAFTA).
The Indian government is allowing the import of garments duty-free.
"We have finalised the draft copy of MoU from our end after discussion with the trade bodies concerned, and sent it to the authority concerned of the Indian government last week," Feroz Ahmed, secretary of the ministry of commerce, told the FE.
He said: "We expect a response from the Indian side soon."
Sources, however, said the Bangladesh side had put objection to some conditions set by India. The conditions are like settling of disputed bilateral issues, obtaining of permission for each consignment prior to export and monitoring of export process by the Indian side.
"India is likely to accept the Bangladesh's argument on resolution of the problems arising out of the conditions to reach consensus for signing of the MoU soon," they said.
However, talking to the FE, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president, Anwar-Ul-Alam Chowdhury (Parvez) said: "It will open a new window of opportunity for Bangladesh."
Answering a question, he said: "We have suggested that EPB (Export Promotion Bureau) will execute and monitor the export process with recommendation from the BGMEA."
Mentioning Bangladesh's expertise in producing some specific RMG items, he said this will help local garment companies expand market to India.
However, in November last, India first sent the draft of MoU with some terms and conditions for Bangladesh to export the apparel items under the SAFTA.
In the draft MoU, India has agreed to provide preferential access of eight million pieces garments from Bangladesh provided such apparels are made with at least 50 per cent of Indian fabrics, sources said.
They said India, however, withdrew conditions that related to specific land customs route and the number of particular category of garment.
As per the draft MoU, sources said, both the parties will meet for reviewing the process in every two-year period for further discussion.