EC invites balanced proposal for relaxation of rules of origin
EC-Bangladesh meet begins
Unb, Dhaka
The European Commission invited a balanced proposal from Bangladesh for relaxation of the EU Rules of Origin (ROO) on trade facilities as the issue was tabled at the EC-Bangladesh Joint Commission meeting that began here Tuesday.They assured Bangladesh of providing technical and vocational training, training to shrimp farmers and shrimp testing machines as part of their assistance for building Bangladesh's trade capacity. The Commission of European nations--who are Bangladesh's largest trading partner as a bloc--also assured support in moving the country's cause at the next trade negotiations under the World Trade Organisation (WTO). The European Commission will make a proposal on trade-related supports to Bangladesh in next few weeks, an official attending the two-day meeting the news agency. "We're willing to buy Bangladeshi products... we're willing to buy Bangladeshi shrimps. But the problem is that the (shrimp) producers use too much antibiotics," EC delegation leader Herve Jouanjean told reporters after deliberations on the trade issues covering Bangladesh's major export items. "The solution is, therefore, how to use antibiotics," he said, suggesting appropriate analysis of the problem. He apprised that steps have been taken to find solutions. "So, we hope, the shrimps in future will meet the EU standards. You'll be able to export to the EU and all over the world," he said. ERD Secretary Ismail Jabihullah, who is the co-chair of the meeting, said a EU technical team had visited Bangladesh earlier and identified some problems of the shrimp industry. To solve the problems, they (EC) have agreed to offer training to producers as well as provide some expensive testing machines. He said the meeting also discussed the rules-of-origin issues as stakeholders in the export-oriented textile industry submitted different proposals making it difficult to take a decision. "The EC is ready to offer the benefits out of the RoO, but they need a proposal which will ensure benefits for all the stakeholders," said the Bangladesh delegation leader. He said the government will sit together with the parties concerned shortly to make a common proposal in this regard. An EC trade official said they were facing a very difficult situation due to the heterogeneous proposals -- some want more flexibility in the RoO while some want it to be frozen. He, however, expected that a revised modality would be published by middle of the year. Through relaxation of the RoO concerning the import of fabrics for readymade garments, Bangladesh's biggest export sector, the European Union has allowed the imports from the SAARC countries. But the major textile-industry stakeholders - BGMEA, BKMEA and BTMA - were at loggerheads over the issue, as there was a fear of market glut to the detriment of the fledging main backward-linkage industry--textiles. They, however, say that they could not tap the full potential of the duty-free market access to EU due to stringent rules of origin. Jabihullah said the EC would provide 67 million euros this year for development of areas that include trade-capacity building.
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