Experts for lobbying with EU to relax Rules of Origin
Sunday, 9 September 2007
FE Report
Some apparel experts have suggested that the government lobby with the European Commission (EC) to relax its (EC) Rules of Origin (RoO) and offering some benefits under GSP so that Bangladeshi apparel could compete in European markets after the phasing out of special safeguard on China from January next year.
Expressing concerned, they stated that after the safeguard measures on China were eliminated from January next year, the major foreign exchange earner industry in Bangladesh would face a stiff competition.
The EC from June 2005 has imposed a temporary safeguard measures on Chinese apparel export to their market which is helping Bangladesh to make export growth every year to the European market. The safeguard will be eliminated from January 2008.
President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), M Fazlul Hoque, told the FE Saturday that the government should lobby with the EC headquarters in Brussels so that it (EC) continues the safeguard measures for another one to two years when the least developed countries (LDCs) including Bangladesh could prepare themselves to face the competition with China.
He said: "BKMEA will apprise the government shortly to take necessary action and also will send letters to the mission in EU countries separately to lobby with those governments."
"If the safeguard is eliminated from China in January next, Bangladesh's export earnings from the RMG will decline a lot," Hoque said adding, the main export destination of Bangladeshi knitwear products is the EU countries.
In last fiscal 2006-07, export earnings from knitwear products to EU was US$2.74 billion out of its total export earnings of $4.553 billion. Besides, the export earnings from woven garments in EU market was $1.74 billion in the same period.
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Anwar-ul-Alam Chowdhury, said that Bangladesh has to lobby with the EC for obtaining some facilities under the RoO so that the country's RMG products could maintain its growth in the EU market after phasing out of safeguard from China.
"Dhaka will have to pursue the EC to ensure some special facilities for the LDCs in the newly proposed generalised system of preference (GSP) by the EC. If the EC offers 25 per cent value addition facilities for the LDCs, Bangladesh could be able to compete with Chine as well as other countries in the European markets," he said adding, those facilities could enable Bangladesh to maintain the export growth to the EU market even after phasing out of limited safeguard on China.
Anwar said that first Bangladesh would have to strengthen its capacity to produce quality RMG at competitive price in order to compete with China in the world market.
Meanwhile, the Commerce Secretary, Feroz Ahmed, told FE Saturday, "Bangladesh could not pursue EC to continue the safeguard measures on China as the measure has been imposed by the EC according to its own policy. However, we can appeal the EC to offer more facilities under the RoO so that the country could export more than present amounts of RMG."
He, however, said that if the RMG exporters including BGMEA and BKMEA make formal appeal to the government, it would sit with the RMG exporters and experts for taking necessary strategy to facilitate Bangladesh's export growth to the EU market after January 2008.
Some apparel experts have suggested that the government lobby with the European Commission (EC) to relax its (EC) Rules of Origin (RoO) and offering some benefits under GSP so that Bangladeshi apparel could compete in European markets after the phasing out of special safeguard on China from January next year.
Expressing concerned, they stated that after the safeguard measures on China were eliminated from January next year, the major foreign exchange earner industry in Bangladesh would face a stiff competition.
The EC from June 2005 has imposed a temporary safeguard measures on Chinese apparel export to their market which is helping Bangladesh to make export growth every year to the European market. The safeguard will be eliminated from January 2008.
President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), M Fazlul Hoque, told the FE Saturday that the government should lobby with the EC headquarters in Brussels so that it (EC) continues the safeguard measures for another one to two years when the least developed countries (LDCs) including Bangladesh could prepare themselves to face the competition with China.
He said: "BKMEA will apprise the government shortly to take necessary action and also will send letters to the mission in EU countries separately to lobby with those governments."
"If the safeguard is eliminated from China in January next, Bangladesh's export earnings from the RMG will decline a lot," Hoque said adding, the main export destination of Bangladeshi knitwear products is the EU countries.
In last fiscal 2006-07, export earnings from knitwear products to EU was US$2.74 billion out of its total export earnings of $4.553 billion. Besides, the export earnings from woven garments in EU market was $1.74 billion in the same period.
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Anwar-ul-Alam Chowdhury, said that Bangladesh has to lobby with the EC for obtaining some facilities under the RoO so that the country's RMG products could maintain its growth in the EU market after phasing out of safeguard from China.
"Dhaka will have to pursue the EC to ensure some special facilities for the LDCs in the newly proposed generalised system of preference (GSP) by the EC. If the EC offers 25 per cent value addition facilities for the LDCs, Bangladesh could be able to compete with Chine as well as other countries in the European markets," he said adding, those facilities could enable Bangladesh to maintain the export growth to the EU market even after phasing out of limited safeguard on China.
Anwar said that first Bangladesh would have to strengthen its capacity to produce quality RMG at competitive price in order to compete with China in the world market.
Meanwhile, the Commerce Secretary, Feroz Ahmed, told FE Saturday, "Bangladesh could not pursue EC to continue the safeguard measures on China as the measure has been imposed by the EC according to its own policy. However, we can appeal the EC to offer more facilities under the RoO so that the country could export more than present amounts of RMG."
He, however, said that if the RMG exporters including BGMEA and BKMEA make formal appeal to the government, it would sit with the RMG exporters and experts for taking necessary strategy to facilitate Bangladesh's export growth to the EU market after January 2008.