It is part of a three-point bailout measures Bangladesh Garment Manufacturers and Exporters Association (BGMEA) submitted to textiles ministry yesterday.

A BGMEA delegation, led by its President Anisul Huq, met Textiles Minister Shahjahan Siraj and made the pleas to meet the challenges of quota-free market in the upcoming post-MFA world trade regime.

The two other measures they sought are setting up of a central bonded warehouse and relaxation of the rules of origin conditions--set by the European Union--to enable the country's apparel sector to become competitive in open market.

Huq pointed out that the tough conditions imposed by the European Union regarding the rules of origin concerning local value addition would be "difficult for the country's woven garment sector to meet".

And woven garments account for nearly 70 percent of the Bangladesh garment exports, he pointed out.

But, he said, the exports of woven textiles to the EU market were 46 percent in 2003 and investment in this sector "dropped dramatically due to these conditions". The country now enjoys only 15-16 percent GSP facility in the export of woven textiles to the EU market.

He demanded reduction of local value addition to the exports of woven textiles down to zero or 25 percent under regional cumulation, in which the EU prescribes fabric import from the Saarc countries.

The BGMEA President said for getting global cumulation from Canada, Bangladeshi exports to the North American country increased to 140 percent in one year and use of Bangladeshi fabric by 52 percent.

Through relaxation of the rules of origin both the local textile and apparel sectors will be benefited, he further pointed out.

Giving logic for establishing central bondage warehouse, he said it would help the country survive in the highly competitive market by way of reducing the lead-time in shipping.

Huq said the embargo on yarn export through Benapole "on the excuse of checking smuggling" is hindering the setting up of BTMA central bonded warehouse and sought the minister's intervention in fulfilling their three demands.

Giving the delegation a patient hearing, the textiles minister laid emphasis on solving the common issues of readymade garment and textile industries "to save the country's economy as these two sectors are complementary".

He said the government would not allow any damage to this labour-intensive industrial sector. "The government would take such initiative as would be beneficial to both textile and readymade garment industries."

Among others in the BGMEA delegation were Second Vice President Alamgir Rahman, Vice President M Golam Faroukh, Director SM Nurul Haq, Director Zinnat Ali Miah, Director Mohammad Shafiul Islam (Mohiuddin), Faisal Samad, Mohammad Shahidul Islam and Shafiqul Islam.