They said Cambodia, Laos and Nepal have already applied for the relaxed rules of origin to qualify for the GSP facility in the European market, which will come into effect from next January.

The demand was made during a press conference organised by Bangladesh Garment Manufacturers & Exporters Association (BGMEA) at its secretariat in Dhaka.

BGMEA President Annisul Huq said the formal deadline for availing the facility expired last week but Bangladesh can still get the facility as the effective date is next year.

He said the government should immediately apply for the facility and "not miss the bus".

Huq said the National Coordination Council (NCC) has suggested a six-month time to study and assess the impact of the derogated GSP.

Acknowledging the NCC observation, the BGMEA president said there is no problem in making decision based on the recommendation of the NCC. "But if the committee recommends in favour of availing the facility after six months it will be of no use since we will not be eligible for the GSP derogation."

"So, we should immediately apply and qualify for the facility and not wait for the final recommendation from the NCC as we will always be able to revert our decision of not availing it," Huq said. "If we get the two-stage GSP facility we will prove that it is a win-win situation for us."

Speaking on the recommendation of the NCC to set up a central bonded warehouse in the export processing zones, the BGMEA president hoped the government will implement the key decision without any political influence.

During January to April in 2004, Bangladesh's apparel export to the US market declined by seven percent in woven and 60 percent in knit categories against corresponding period of the previous year, much to the concern for Bangladesh's RMG sector, he said.

"On the other hand, apparel export to the EU is gradually increasing," he said, adding, "If the euro remains stable, the growth will come to a standstill."

Besides, 10 new member countries of the EU will get duty free facility in RMG sector by using fabrics of third countries, Huq said.

He said in such a situation if rules of origin are not relaxed the RMG export to the EU countries will decline in the near future.

"As Bangladesh is losing the US market day by day, we have to consolidate our position in the EU market at any cost," Huq said. "Only by taking these measures we will be able to save our textile industry from ruination."

Responding to a question from journalists on conflicting versions from the BGMEA and BTMA (Bangladesh Textile Mills Association) Huq said there is no conflict between the two associations.

"We are not enemies. We also want our backward industries to grow," he said.

The BGMEA leader also made a six-point recommendation to the government for the development of textile industry.

About the prices of different types of cotton yarn, Huq said the prices offered by Pakistani and Indian suppliers are lower by 6.45 percent to 20.77 percent than those by Bangladeshi suppliers.

"And for this difference we have to import cotton yarn at lower rate from Pakistan or India," he added.