Ride Bangladesh-Canada trade wave
April 3, 2010
Masud Rahman, president of Canada Bangladesh Chamber of Commerce and Industry, speaks at a ceremony marking the $1.4 billion bilateral trade between Canada and Bangladesh in 2009, at Dhaka Sheraton Hotel yesterday. Dipu Moni, foreign minister, and Robert McDougall, Canadian high commissioner, are also seen. CanCham
Decision on stimulus package for apparel sector likely by Oct
September 27, 2009
Real impact of recession on export to be assessed
The government is likely to announce a stimulus package for the apparel sector in end-October to help the latter weather the impact of the global economic meltdown.
Finance Minister AMA Muhith briefing the newsmen Wednesday in Dhaka said the government would give its decision on the disbursement of stimulus package within a month after examining the RMG sector’s export situation.
“We’ve formed a committee to determine the real effect of the meltdown on the RMG sector. The committee will recommend the necessary support to it. It would complete its work within a month,” Muhith told reporters emerging from the meeting of the national taskforce on global recession.
The government had earlier formed a high-powered taskforce, headed by the finance minister on recession. It held a meeting Wednesday to assess the impact of the global economic meltdown on the country’s economy and suggest possible measures to address the same.
Muhith said: “We will consider how we can offer the stimulus packages to the garment industry. Product and market diversification by the apparel sector would get special consideration for the fiscal benefit.”
“The RMG is the largest provider of employment in the industries sector. About 3.0 million people work with this industry. It also earns the largest amount of foreign exchange through exports. So, we cannot ignore this sector,” he said.
The national taskforce, formed in March last, met for the second time Wednesday as the country’s economy, especially the major export-oriented sectors, has been hard hit by the second round impact of the latest global economic gloom.
The finance minister said: “The incentive packages of the government would continue. It will be disbursed on the basis of the true impact of the global financial fallout.”
Md. Fazlul Hoque, president of the country’s apex knitwear manufacturers’ platform -BKMEA, said: “We are happy that the government has recognised RMG as an affected sector. We hope the newly formed committee would complete its work within a month and government would offer adequate support to us.”
Echoing similar voice, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Salam Murshedy said: There has been a fruitful discussion today, We are hopeful about receiving an announcement form the government on the stimulus package within a month.”
AMA Muhith said the taskforce committee members have discussed more about the economic situation than the meltdown. “There were suggestions about the ways of boosting our economy”, he said.
“The members of the taskforce maintained that administrative inefficiency relating to the implementation of the development projects was a major obstacle to fight the impact of global recession,” he said.
“So we have decided to give highest attention to developing infrastructures, especially in areas of energy and power, which are major impediments to new investment, the finance minister said.
Shipbuilding sector would get special attention of the government to help build it as a competitive industry, he said.
The members suggested highlighting the country’s success in fighting the effects of the meltdown to help brighten its image in the outside world, Muhith said.
Economic adviser Mashiur Rahman said the major problem of the country at this moment is power and energy shortage that is harming the economy more than the global recession. “We have to overcome this problem together,” he added.
Commerce minister Faruq Khan said: “We are not satisfied over the 11 per cent export growth last financial year. It needs to go further up. So, some policy and infrastructural supports to the manufacturing industries would have to be augmented.”
The government has allocated Tk 50 billion in the current national budget to support the country’s recession-hit sectors, especially the export-oriented industries.
Bangladesh to keep enjoying GSP facilities in USA
July 19, 2008
Foreign Affairs Adviser Dr Iftekhar Ahmed Chowdhury yesterday said Bangladesh would “continue to enjoy the GSP facilities as before” in the United States.
The adviser said the news came to him as the US authorities informed the Bangladesh mission in Washington about the latest decision.
“For now, I can say that the continuation of GSP facilities is a good news for Bangladesh,” the adviser told reporters at the ministry. “We will continue to work diplomatically with our American friends for further extension.”
“In the meantime, we should emphasised workers’ overall welfare, which will also improve our market access,” the adviser said.
At the same time, he said, a review process initiated by a petition from AFL-CIO (American Federation of Labour and Congress of Industrial Organisations) in the US would be extended by another year. The federation is responsible to oversee if Bangladesh ensures rights of the labourers, especially who work in the country’s specialised export processing zones.
The Generalised System of Preferences (GSP) is designed to promote economic growth in developing nations by giving preferential duty-free entry of their products to the US market.
Bangladesh gets duty-free access to the US market on certain export items, including garment products, under the facilities.
The US had earlier put conditions that Bangladesh would not get GSP facilities anymore if the government does not ensure workers’ freedom of association or the right to collective bargaining in its EPZs.
The government has responded positively and initiated welfare associations for the EPZ workers.
GSP facilities in US mkt to continue
July 4, 2008
The Adviser said the news came to him as the US authorities informed the Bangladesh mission in Washington about the latest decision.
“For now, I can say that the continuation of GSP facilities is a good news for Bangladesh,” the Adviser told reporters at the ministry. “We will continue to work diplomatically with our American friends for further extension.”
“In the meantime, we should emphasised overall welfare of workers, which will help improve our market access,” the Adviser said.
At the same time, he said, a review process initiated by a petition from AFL-CIO (American Federation of Labour and Congress of Industrial Organisations) in the US would be extended by another year. The federation is responsible to oversee if Bangladesh ensures rights of the labourers, especially who work in the country’s specialised Export Processing Zones.
The Generalised System of Preferences (GSP) is designed to promote economic growth in developing nations by giving preferential duty-free entry of their products to the US market.
Bangladesh gets duty-free access to the US market on certain export items, including garment products, under the facilities.
The US had earlier put conditions that Bangladesh would not get GSP facilities anymore if the government does not ensure workers’ freedom of association or the right to collective bargaining in its EPZs.
The government has responded positively and initiated welfare associations for the EPZ workers.
Delmas to set up garments manufacturing industry in Chittagong EPZ
April 6, 2008
| Bangladeshi company in the name & style M/s. Delmas Apparels (Pvt.) Limited is going to set up a Garments Manufacturing Industry in the Chittagong Export Processing Zone.
This 100% local owned company will invest US$ 2.5 million and will produce 3,60,000 dozens Woven garments items. The company will create employment opportunity for 718 Bangladeshi including 17 foreign nationals. An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the M/s. Delmas Apparels (Pvt.) Limited in BEPZA Complex, Dhaka (01-04-2008). General Manager (Investment Promotion) of BEPZA and Managing Director of M/s. Delmas Apparels (Pvt.) Limited have signed the lease agreement on behalf of their respective organization. The Executive Chairman of BEPZA and other officials were present on this occasion. |
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Global : Preview of textile & garment industry – 2007
April 3, 2008
The year 2007 proved to be an exceptional year for the textile & garment industries of some countries & tumultuous for others. On one hand countries like China & Vietnam had a very excellent year, on the other hand countries like USA and India had declining figures.
According to revised reports from China, enterprises in the textile industry are expected to complete a total industrial output value of 3.05 trillion Yuan, up 21.9 percent year on year.
The latest statistical reports show that China exported textile and apparel worth US $156.584 billion in the first 11 months in 2007, with 19.86 percent increase over the same period of last year.
Of the total exports, apparel and accessories generated over $105.43 billion, a rise of 22.2 percent; yarn, fabric and other textile products makes up $51.152 billion, augmenting 15.3 percent.
Provisional figures released by Vietnamese MOIT currently suggest that the textile and garment industry of Vietnam earned US$ 7.8 billion exports revenue in 2007, representing a year on year increase of 32% and become the largest foreign currency earning industry for Vietnam.
Data released by the U.S. Federal Reserve yesterday showed that U.S. Textile Mill output fell sharply by 12.1 percent in 2007. The drop in output was the largest since the U.S. government began publishing output data on the topic in 1972. From its peak in December 1997, U.S. Textile Mill output has plunged 44.85 percent.
A flood of subsidized imports, especially those from China, is crippling the U.S. textile industry. The decline in U.S. output directly is tied to the loss of market share, and the loss of market share then is directly tied to the loss of hundreds of thousands of U.S. textile and apparel manufacturing jobs.
While on the other hand the textile & garment industry in India had to face the contentious issue of the appreciation of the rupee. The rupee has appreciated by nearly 15 percent in the last one & half year which has severely affected the competitiveness of the textile & garment industry.
India recorded a decline of 12 percent in dollar terms & 20 percent decline in rupee terms in the first half of the current fiscal. The biggest decline to the tune of 29.13 percent was witnessed in export of MMF garments corresponding to the previous year. Export of cotton textiles also declined by 16.62 percent
Apparels & garments exports from Bangladesh totaled $9.21 billion, or 75 per cent, of Bangladesh??s annual export income in the fiscal year till June 2007. Garments, especially knitwear, have driven the country??s export performance since global export quotas were phased out. The Bangladesh garment industry in particular has been plagued by workers unrest in the last few weeks.
In Nigeria there have been losses of more than 10000 jobs in the textile industry. One of the reasons attributed to the same are smuggling of cheap textile and garments which also became a major concern for the industry. Competitive prices quoted by Chinese textile & garment companies have brought to standstill, textile industries of quite a few other countries too.
Global Petition: GSP for Bangladesh in USA must not be cancelled
February 14, 2008
Dear All,
Please note that the livelihood security of 2 million ready made garments workers (of which more than 90% is women) of Bangladesh is facing a challenge as the issue of labor rights have once again being wrongly tagged with the undisputed provision of preferential market access of Bangladesh (as a least developed country) to USA.
Why are we calling on you?
We observe that AFL-CIO had submitted a petition to USTR with four main complaints. Based on which allegations, AFL-CIO is seeking cancellation of GSP in USA, a system that favors Bangladeshi garment export as in their opinion the country does not allow labor rights in export processing zones.
Although, Bangladeshi apparel sector or any major sectors do not enjoy GSP facilities from US, if the USTR takes the petition of AFL-CIO into consideration and gives any decision against Bangladesh, it will seriously hamper Bangladesh’s export interests in US. Such a decision may give a wrong signal to US traders as well as consumers about use of Bangladeshi products, he noted.
We fear that if the hearing on the petition (to be held on October 4, 2007), Bangladesh is deprived of GSP in USA, the RMG sector of Bangladesh, which is already facing a decline in orders at the face of elimination of export quotas, will suffer another setback. Hence this may soon result in closures of factories and mass retrenchment of workers (of which more than 90 percent are women).
What can you do to protect workers interests in Bangladesh?
We find the strategy of “punishing” Bangladesh by cancellation of GSP in USA under the allegation of poor labor performance in EPZ as counter productive – i.e. when the goal is to protect, promote and ensure workers rights in Bangladesh.
We observe that the WTO treaty and present global trade regime have little benefit for the least developed economies. The only safeguard for countries like Bangladesh at the face of expansion of trade of bigger economies is the provision of special and differential treatments – which also includes measures of preferential market access. In USA so far Bangladesh has not received the “duty and quota free” market access. The only provision of preference has been the GSP. If even that is taken away, Bangladesh RMG sector will surely not be benefited. The cancellation of GSP will have a dual negative-role – it will promote unfair trade by working as a non-tariff barrier and leave a negative impact on livelihood security of the millions of garments workers of the country.
Therefore, we call on you to can put your name on the call for “unconditional retention of GSP for Bangladesh exports in USA”. (click here to view the petition and register your support)
This e-mail petition with your solidarity signs will be sent to AFL-CIO and USTR authorities. Please note that our call has to reach before the hearing of 4th October 2007.