US
Ambassador Dan W Mozena yesterday said Bangladesh should create a good
climate in relationship with the US to get duty-free access for its
readymade garment items to the US market.
Mozena also said getting such an access and the benefit of Generalised System of Preferences (GSP) from the US is a political process.
He suggested Bangladesh should lobby the US Congress, which decides on giving the duty-free market access to any country.
Mozena spoke at a discussion on 'Bangladesh-US bilateral trade: the way forward' organised by Dhaka Chamber of Commerce and Industry (DCCI) at its office in the capital.
Bangladesh has been lobbying the US for quite a long time to get the trade benefit, but the US has been delaying it.
Under the current customs rules of the US, 97 percent Bangladeshi products enjoy duty-free access to the US market, but the country's key export item, garments, are excluded from the package.
Though Bangladesh is a least developed country, it has been exporting garment items to the US by paying an average duty at 15.3 percent, which is higher compared to what developed and developing countries pay.
Bangladesh paid more than $600 million in duty for exporting garments worth $5.10 billion in 2011, while China, world's largest apparel supplier, pays 3 percent duty on garment exports to the US market.
“The good idea is to create a good climate in relationship between Bangladesh and the US,” Mozena said.
“Telling the ambassador (to give the duty-free access) is just wasting your time. It is the political process.”
Bangladesh has the opportunity to be the largest garment exporter worldwide as the country has a vibrant private sector business community.
Bangladesh can also be a good investment destination as the country has a good reserve of natural gas and human resources. “The people are great asset of the country. You have to invest in the people,” he said.
But, political instability and uncertainty, red-tapism, corruption, weak port management and the bad condition of roads and highways -- especially the Dhaka-Chittagong highway -- are the major obstacles to bringing more foreign direct investment in Bangladesh, Mozena said.
Bangladesh has the scope to be a communication hub like Singapore for its geographical location. Bangladesh is at the centre of Afghanistan, India, China and Nepal. “It's a blessing,” he said.
Mozena also said getting such an access and the benefit of Generalised System of Preferences (GSP) from the US is a political process.
He suggested Bangladesh should lobby the US Congress, which decides on giving the duty-free market access to any country.
Mozena spoke at a discussion on 'Bangladesh-US bilateral trade: the way forward' organised by Dhaka Chamber of Commerce and Industry (DCCI) at its office in the capital.
Bangladesh has been lobbying the US for quite a long time to get the trade benefit, but the US has been delaying it.
Under the current customs rules of the US, 97 percent Bangladeshi products enjoy duty-free access to the US market, but the country's key export item, garments, are excluded from the package.
Though Bangladesh is a least developed country, it has been exporting garment items to the US by paying an average duty at 15.3 percent, which is higher compared to what developed and developing countries pay.
Bangladesh paid more than $600 million in duty for exporting garments worth $5.10 billion in 2011, while China, world's largest apparel supplier, pays 3 percent duty on garment exports to the US market.
“The good idea is to create a good climate in relationship between Bangladesh and the US,” Mozena said.
“Telling the ambassador (to give the duty-free access) is just wasting your time. It is the political process.”
Bangladesh has the opportunity to be the largest garment exporter worldwide as the country has a vibrant private sector business community.
Bangladesh can also be a good investment destination as the country has a good reserve of natural gas and human resources. “The people are great asset of the country. You have to invest in the people,” he said.
But, political instability and uncertainty, red-tapism, corruption, weak port management and the bad condition of roads and highways -- especially the Dhaka-Chittagong highway -- are the major obstacles to bringing more foreign direct investment in Bangladesh, Mozena said.
Bangladesh has the scope to be a communication hub like Singapore for its geographical location. Bangladesh is at the centre of Afghanistan, India, China and Nepal. “It's a blessing,” he said.
Source: http://www.bgmea.com.bd/home/pages/DutyfreeaccessforRMGhinges
