PM vows to work hard for duty-free access to US
Batexpo opens in city
Star Report
Prime Minister Khaleda Zia yesterday said her government will intensify its efforts to obtain duty-free market access to the US to sustain Bangladesh's readymade garment (RMG) market there during the quota-free regime. The country's exports to Canada and Australia have risen significantly after getting duty-free access to them, she observed, adding exports to the US will also see a boost if Bangladesh can get the trade privilege. Speaking as the chief guest at the inaugural function of the 15th edition of Bangladesh Apparel and Textile Exposition (Batexpo) at a city hotel Khaleda said, "In line with our economic diplomacy, we will make every endeavour to get duty-free access to the US market. The private sector is also needed to make its best efforts to get the trade facility." In response to a proposal of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) for waiver or rescheduling of loans taken by sick RMG units to help them revive, the prime minister said the government will look into its. Khaleda asked apparel manufacturers to invest more in backward linkage industries instead of being confined to tailoring. She said the government formed the national co-ordination council to help the RMG sector develop and withstand the shockwaves of MFA (multi-fibre arrangement) elimination. "The government will take appropriate steps to solve the problems of RMG sector, like improving clearance and customs services at Chittagong Port, in line with the council's proposals," the prime minister promised the businessmen present. Khaleda said her government is currently in negotiations with some countries for free trade agreements at bilateral and multilateral levels. Many other countries also have expressed their interests to sign such preferential trade deals, she added. At the opening session, the organiser of the three-day exposition, BGMEA, awarded Wal-Mart of the US and Hennes and Mauritz International (H&M) of Sweden as the two best buyers of Bangladesh's RMG. Of the total $1.63 billion RMG export to the US in 2003-04, retailing giant Wal-Mart alone consumed over 35 percent. The prime minister handed over the awards to Andrew Tsuei, managing director of Wal-Mart Global Procurement, and Pelly Karlsson, chief representative of H&M, Europe. Speaking on the occasion, BGMEA President Annisul Huq said Bangladesh earned over $47 billion from RMG exports in the last 20 years. "If the sector gets government support, yearly export earnings from it can be upped from the present $5.5 billion to $10 billion by 2010," he projected. Annisul Huq said a BGMEA team recently visited the US and met senators, congressmen and high government and private sector officials to lobby for duty-free access. "We are hopeful that the US will award Bangladesh with the preferential facility." He reiterated the BGMEA's call for setting up central bonded warehouses at the export processing zones as per the national co-ordination council's recommendation. The BGMEA chief also expressed the needs for relaxation of rules of origin, opening up land ports for yarn import, providing loans to install backward linkage industries and improving port services. Wal-Mart Global Procurement MD Tsuei said, "If Bangladesh can maintain quality, compliance and price competitiveness, Wal-Mart will continue importing apparels from it into the post-MFA period." Pelly Karlsson said, "I have visited Chittagong Port, and to my view it must be upgraded to improve the competitiveness of Bangladesh's exports." Commerce Minister Altaf Hossain Choudhury and Advisor to the ministry Barkat Ullah Bulu also spoke at the function. Around 66 corporate bodies and organisations from Pakistan, India, China, Thailand and Bangladesh are taking part in the country's largest apparel fair comprising 82 stalls. Leader of the Opposition in Parliament Sheikh Hasina will attend the closing ceremony of Batexpo as chief guest on Friday.
|