RMG may get zero duty access to US
Author / Source : STAFF REPORTER
DHAKA, NOV 10: Bangladeshi garment exporters, who already enjoy duty-free access to EU and India, may also be able to get a similar entry to the US market in near future. It would give a big boost to the country’s readymade garment (RMG) industry and attract more investment in the sector from the world’s leading economy, reported renowned online news portal for textile industry Fibre2fashion.com.
Currently, the US accounts for about 40 per cent of the total annual apparel exports of Bangladesh worth US$ 18 billion. The EU accounts for more than half of the country’s garment exports, and the remaining exports are to India, Australia, South Africa, Japan and New Zealand.
According to the report, a 20-member trade delegation led by AK Azad, president of the Federation of the Bangladesh Chambers of Commerce and Industry (FBCCI), recently paid a visit to the US as part of the entourage of Prime Minister Sheikh Hasina’s visit to New York. “The objective of the delegation was to promote the country’s garment exports in the US,” Murshed Murad Ibrahim, president of the Chittagong Chamber of Commerce and Industry (CCCI), who was a member of the 20-member delegation said.
“During our visit, the US trade leaders assured us that we are going to get duty free access for our RMG items to the US market,” Ibrahim said.
“The issue will be first presented before the Office of US Trade Representative. Subsequently, a bill for granting duty-free entry for Bangladeshi apparels to the US market will be placed in the Senate. So, we are very much optimistic that Bangladeshi RMG will get duty free access into the US market very soon,” he added.
Explaining the benefit of duty-free access to Bangladeshi RMG, the CCCI President said, “We are the third largest RMG exporters to the US market. If this bill granting duty-free entry is passed, then Bangladesh will become the centre of interest for the investors.”
“As the US is the world’s largest economy, the duty free access to our RMG products will attract more investors to invest in Bangladeshi RMG sector, and its share in international garment trade would increase. Since RMG is the largest export item for Bangladesh, the whole economy of the country will boost up. There will be more employment and our GDP will rise more than our expectation,” he exclaimed.