Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Siddiqur Rahman has urged US Ambassador to Bangladesh to provide duty-free access to US market for RMG products to create a win-win situation for the bilateral trade between the two countries. US is the single largest export destination for Bangladeshi products, especially apparels. A similar request has been sent to Brazilian Government as well. These countries do not have to pay any duty on cotton exports to Bangladesh.
With 6.1 million bales of cotton export and home to more than 400 textile mills, Bangladesh is ranked as the second largest cotton importer in the world. “Bangladesh has long been importing cotton from the US to make apparel for export… We firmly believe that cotton import from the US will grow significantly if the apparel products made of the US cotton receive favourable treatment in terms of tariff in accessing the US market,” the BGMEA President said in the letter. It is pertinent to mention here that Generalised System of Preferences (GSP) facility offered by US to Bangladesh was suspended on June 27, 2013.
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In the 2015-16 fiscal year, export to the US saw a 6.36 per cent growth, amounting to US $ 5.62 billion, compared to the US $ 5.28 billion earnings in the 2014-15 fiscal year. In July-December of 2016-17 fiscal year, the country earned US $ 41 million from garment exports to Brazil, but high duty ranging from 30 per cent to 35 per cent is seen as the biggest hurdle in increasing exports from Bangladesh to this market.
