BGMEA seeks policy support to retain RMG sector's competitiveness
Tuesday, 6 February 2024
BGMEA has requested policy support from the government to sustain the competitiveness of export-oriented industries, particularly the ready-made garment sector, following the country's graduation from the list of least developed countries (LDCs) in 2026, reports BSS.
A delegation from The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by President Faruque Hassan, conveyed this during a meeting with Ahasanul Islam (Titu) MP, the State Minister of the Ministry of Commerce, at the secretariat in Dhaka on Monday, as stated in a press release.
The discussions covered various aspects, including the current state of the RMG industry, preparedness for challenges related to LDC graduation, and potential measures to enhance trade competitiveness and explore new export markets.
BGMEA President Faruque Hassan briefed the State Minister on the significant challenges facing the RMG industry, citing a decline in exports due to global inflation and increased prices of energy and raw materials.
He specifically addressed the recent government decision to reduce cash incentives for garment shipments and other export-oriented products, expressing concern about the potential negative impact on Bangladesh's garment exports.
Given that the RMG industry alone contributes approximately 84 per cent to the total export earnings, there is apprehension about the effects on foreign reserves.
In summary, BGMEA is actively seeking governmental support to address challenges and ensure the continued competitiveness of the country's export-oriented industries, with a specific focus on the RMG sector, in light of the anticipated LDC graduation in 2026.
Faruque urged the government to reconsider the decision and continue the policy support of cash incentives as before.
As the preferential trade benefits currently enjoyed by Bangladesh as an LDC will no longer be available after the graduation, Faruque stressed the need for necessary policy measures to help the country address upcoming challenges in the international trade landscape.
He also urged the government to ease export procedures for the RMG industry to overcome existing challenges and progress forward.
The BGMEA President praised the Commerce Ministry for its support in exploring new export destinations and enhancing the skills of the RMG workforce.