Exporters fear market loss, Adviser pins hope on govt-pvt coordination
Wednesday, 29 August 2007
Finance and Commerce Adviser Mirza Azizul Islam Tuesday said the country's knitwear industry could withstand the upcoming threat of losing European market to China through coordinated efforts by the industry and the government, report UNB/ bdnews24.com
The adviser came up with the high hopes amid stakeholders' concern voiced at a seminar at Dhaka Sheraton that Bangladesh's knitwear items might lose the European Union (EU) market to China after the removal of EU safeguard measure against China in December this year.
They stressed the need for initiatives to pursue the continuation of EU safeguard measures against China as one of the remedial measures to keep up the industry growth. "Let me assure you that the government will do its best to negotiate with the parties concerned," he told the seminar.
The EU imposed "safeguard measures" on Chinese textile imports in 2005 to prevent a surge in Chinese exports to the EU soon after the phase-out of the quota system at the end of 2004.
The restriction, imposed under a World Trade Organisation (WTO) provision, will be withdrawn by the end of 2007, if not extended further.
The EU safeguard measures, however, have benefited some other exporters of textiles and clothing, including Bangladesh. Consequently, there are fears for Bangladesh as the EU provision is likely to end this year.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) organised the seminar titled "Impact of Removing EU Safeguard Measure Against China" on the knitwear export of Bangladesh and other least developed countries (LDCs) after 2007.
Entrepreneurs, academics, economists, researchers and diplomats took part in the discussion with the BKMEA President Fazlul Huq in the chair.
The seminar was organised marking the launching of BKMEA-affiliate Institute of Apparel Research and Technology (IART) and its first research paper. BKMEA Director MA Baset presented the paper at the seminar.
The IART research paper found that in the first half of this year (January-June) Bangladesh's knitwear export growth declined to 8 per cent compared to about 43 per cent and 26 per cent growth of the same period in 2006 and 2005 respectively.
The BKMEA president informed that they have got a very poor response from the buyers during the last two months (July-August) for reasons unknown to the stakeholders.
He said they are also unsure about the exact consequence after lifting the safeguard measures, but they have fear that they might lose the market.
Amid the gloomy prospect, the Adviser expressed the high hopes of overcoming the situation through coordinated efforts by the private sector as well as the government support.
He said the government was trying to create a congenial atmosphere through a two-way approach - maintaining law and order and improving infrastructure facilities.
The adviser came up with the high hopes amid stakeholders' concern voiced at a seminar at Dhaka Sheraton that Bangladesh's knitwear items might lose the European Union (EU) market to China after the removal of EU safeguard measure against China in December this year.
They stressed the need for initiatives to pursue the continuation of EU safeguard measures against China as one of the remedial measures to keep up the industry growth. "Let me assure you that the government will do its best to negotiate with the parties concerned," he told the seminar.
The EU imposed "safeguard measures" on Chinese textile imports in 2005 to prevent a surge in Chinese exports to the EU soon after the phase-out of the quota system at the end of 2004.
The restriction, imposed under a World Trade Organisation (WTO) provision, will be withdrawn by the end of 2007, if not extended further.
The EU safeguard measures, however, have benefited some other exporters of textiles and clothing, including Bangladesh. Consequently, there are fears for Bangladesh as the EU provision is likely to end this year.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) organised the seminar titled "Impact of Removing EU Safeguard Measure Against China" on the knitwear export of Bangladesh and other least developed countries (LDCs) after 2007.
Entrepreneurs, academics, economists, researchers and diplomats took part in the discussion with the BKMEA President Fazlul Huq in the chair.
The seminar was organised marking the launching of BKMEA-affiliate Institute of Apparel Research and Technology (IART) and its first research paper. BKMEA Director MA Baset presented the paper at the seminar.
The IART research paper found that in the first half of this year (January-June) Bangladesh's knitwear export growth declined to 8 per cent compared to about 43 per cent and 26 per cent growth of the same period in 2006 and 2005 respectively.
The BKMEA president informed that they have got a very poor response from the buyers during the last two months (July-August) for reasons unknown to the stakeholders.
He said they are also unsure about the exact consequence after lifting the safeguard measures, but they have fear that they might lose the market.
Amid the gloomy prospect, the Adviser expressed the high hopes of overcoming the situation through coordinated efforts by the private sector as well as the government support.
He said the government was trying to create a congenial atmosphere through a two-way approach - maintaining law and order and improving infrastructure facilities.