2-stage GSP to raise knitwear export to Japan in two years
Sonia H Moni | Saturday, 16 April 2011
Sonia H Moni
The country's knitwear export to Japan might go up by a volume worth US$ 100 million more in next two years after it gets the two-stage Generalised System of Preference (GSP) facility from that country, officials have said. Export Promotion Bureau (EPB) vice chairman Jalal Ahmed told the FE, "The knitwear export revenue from Japan might reach US$ 100 million more in two years as the Japanese government has relaxed the rules of origin for GSP on knit products this month." "The commerce ministry has received a letter from Japanese authorities about the confirmation of the two-stage GSP facility on April 13 (issued on April 11) which will be effective immediately," he said. Mr Ahmed added, "Now Bangladeshi knitwear manufacturers will have to do only knitting and dying, and sewing to export their products to Japan. The exporters will be relieved of making yarn as they are now permitted to import yarn from abroad." He said, "Woven garment manufacturers have increased export volume of products worth US$ 100 million to Japan in the last two years. The local knitwear manufacturers can also grab the opportunity and increase export." Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) former president Fazlul Haque told the FE, "It is good news for our country as we were worried that our export rate to Japan might fall after the natural disaster in that country. "But thanks to Japan that they have keep their word in the vulnerable situation after the earthquake and tsunami. It will also increase foreign investment in Bangladesh also," he said. Japan has a lucrative knitwear market worth US$ 25 to 27 billion, and Bangladesh exports products worth US$ 500 million there every year. "Earlier we were expecting for the opportunity to export knitwear products worth US$ 1.0 billion to Japan in next one year after getting the two-stage GSP facility, but now we have to wait for their recovery from the impact of the natural disasters." The BKMEA former president said this facility will create big opportunities for the country's T-shirt, polo shirt, socks and winter-wear manufacturers. "Japan has a large demand for socks, and Bangladesh is capable of producing yarn and fabric for this item. But we have to import elastic, that's why we are not able to export socks to Japan. Two-stage GSP facility will open up the door to exporting socks to Japan in the near future." The ex-BKMEA president said Okamoto Corporation, one of the biggest Japanese companies, was interested to set up socks factory in Bangladesh in November 2009. But Bangladesh was not able to fulfil the criteria of the three-stage GSP facility then. He expressed the hope that besides Okamoto, many other Japanese companies might be interested to invest in Bangladesh to set up factories soon after Japan gives the two-stage GSP facility.
The country's knitwear export to Japan might go up by a volume worth US$ 100 million more in next two years after it gets the two-stage Generalised System of Preference (GSP) facility from that country, officials have said. Export Promotion Bureau (EPB) vice chairman Jalal Ahmed told the FE, "The knitwear export revenue from Japan might reach US$ 100 million more in two years as the Japanese government has relaxed the rules of origin for GSP on knit products this month." "The commerce ministry has received a letter from Japanese authorities about the confirmation of the two-stage GSP facility on April 13 (issued on April 11) which will be effective immediately," he said. Mr Ahmed added, "Now Bangladeshi knitwear manufacturers will have to do only knitting and dying, and sewing to export their products to Japan. The exporters will be relieved of making yarn as they are now permitted to import yarn from abroad." He said, "Woven garment manufacturers have increased export volume of products worth US$ 100 million to Japan in the last two years. The local knitwear manufacturers can also grab the opportunity and increase export." Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) former president Fazlul Haque told the FE, "It is good news for our country as we were worried that our export rate to Japan might fall after the natural disaster in that country. "But thanks to Japan that they have keep their word in the vulnerable situation after the earthquake and tsunami. It will also increase foreign investment in Bangladesh also," he said. Japan has a lucrative knitwear market worth US$ 25 to 27 billion, and Bangladesh exports products worth US$ 500 million there every year. "Earlier we were expecting for the opportunity to export knitwear products worth US$ 1.0 billion to Japan in next one year after getting the two-stage GSP facility, but now we have to wait for their recovery from the impact of the natural disasters." The BKMEA former president said this facility will create big opportunities for the country's T-shirt, polo shirt, socks and winter-wear manufacturers. "Japan has a large demand for socks, and Bangladesh is capable of producing yarn and fabric for this item. But we have to import elastic, that's why we are not able to export socks to Japan. Two-stage GSP facility will open up the door to exporting socks to Japan in the near future." The ex-BKMEA president said Okamoto Corporation, one of the biggest Japanese companies, was interested to set up socks factory in Bangladesh in November 2009. But Bangladesh was not able to fulfil the criteria of the three-stage GSP facility then. He expressed the hope that besides Okamoto, many other Japanese companies might be interested to invest in Bangladesh to set up factories soon after Japan gives the two-stage GSP facility.