Space For Rent

Space For Rent
Tuesday, January 13, 2015, Poush 30, 1421, Robiul Awal 21, 1436 Hijr

Expansion of RMG export
Published : Tuesday, 13 January, 2015,  Time : 12:00 AM,  View Count : 12

Reportedly Commerce Ministry of Bangladesh is brainstorming on different areas and aspects of boosting exports of Bangladesh products abroad, the item that occurs on top of the agenda is garment and the country that comes as central is the US. Readymade Garments or RMG is our number one export item and in 2014 the country earned 25 billion US dollar out of it which accounts for 80 per cent of the national import earning. Our RMG factories enjoy back to back LC in importing the material which they use in their establishments that is tax free and the job the factories do is only cutting and sewing. Some of our own people due to the simplistic nature of the practice call us a nation of tailors echoing Napoleon saying the English as a nation of shopkeeper.
We do neither share nor appreciate the unscrupulous joke but apply our mind seriously on the simplicity aspect of the process that has a practical negative aspect. Despite flawlessness, good quality and competitive price contribution of the manufacturing country in the value added process is often raised and we are discriminated due to that. This matter is long known but are not felt and taken care of by our RMG sector about or against which we hardly write in view of the adverse effect it might bring in the earning out of it. But before or during asking for duty or quota free access to any market we must consider that the value addition factor is always used against us as a weapon by not only importing countries but also exporting competitors in the arena.
If it is seen from the international business competition point we cannot hold our competitors responsible for and it would not be against business ethics either; even if the World Trade Organisation (WTO) shows some lenience. The Commerce Ministry by thinking and taking measures in this respect has shown its scruple and is reportedly thinking to raise the country's quota free access issue at a conference scheduled to be held in Geneva early next month. The Ministry while dealing with the matter must impress upon the RMG producers to diversify their production process, develop backward linkage industries, set up training and research institutions and further improve their design, style and finishing.
Europe offers quota and duty free access of Bangladesh RMG but the US does not but she alone imports 40 per cent of Bangladesh's garments items. So obtaining quota and duty free facility to US market is important than any other factor. Here diplomatic factor has a role to play, the arguments the US offers against Bangladesh RMG manufacturers are to be seen from Bangladesh context and not from the American context which are naturally different in many ways. A diplomatic success in this regard shall bring a business success.

Editor : Iqbal Sobhan Chowdhury
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