Local knitwear cos to get two-stage GSP facilities from Japan next April

http://www.thefinancialexpress-bd.com/more.php?news_id=121031&date=2010-12-26

Local knitwear cos to get two-stage GSP facilities from Japan next April

‘BD’s knitwear export to Japan will reach $1b’
Sonia H Moni

Local knitwear manufacturers are going to get two-stage GSP facilities from Japan in next April that will boost up the country’s export and foreign investment.

Former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Fazlul Haque told the FE, “Bangladesh will get an opportunity to export knitwear products worth US$ 1.0 billion to Japan within next one year after getting the two-stage GSP facilities.”

Japan has a lucrative knitwear market worth US$ 25 to 27 billion, and Bangladesh exports products worth US$ 500 million there every year.

The Government of Japan will enact the law on two-stage GSP (generalised system of preferences) facilities in March 2011, which will be effective from April.

Bangladesh now has to produce yarn as well as fabric, and manufacture the products to get the three-stage GSP facilities from Japan. From next April Bangladesh has to fulfil only two out of the three criteria to get GSP facilities from there.

Mr Haque said this facility will create big opportunities for the country’s T-shirt, polo shirt, socks and winter-wear manufacturers.

“Japan has a huge demand for socks, and Bangladesh is capable to produce yarn and fabric for socks. But we have to import elastic, that’s why we are not able to export socks to Japan. Two-stage GSP facilities will open up the door to export socks to Japan in 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 facilities then.

He expressed hope that besides Okamoto many other Japanese companies might be interested to invest here to set up factories soon after Japan gives the two-stage GSP facilities.

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