Bangladesh to renew campaign for duty-free GSP facilities in US market

Author Topic: Bangladesh to renew campaign for duty-free GSP facilities in US market  (Read 1509 times)

Offline Md. Fouad Hossain Sarker

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Bangladesh has emerged, in just under a decade, as the twelfth largest garment-manufacturing nation in the world, thanks largely to the Multi-Fiber Agreement (MFA), and the Generalized System of Preferences (GSP) of the European Union, that conferred significant quota benefits to the country. The garment sector now accounts for about 77% of the country’s foreign exchange earnings, and 50% of its industrial work force. Bangladesh has now become a significant supplier to both North America and Europe. More than 50% of Bangladesh’s garment exports go to the countries of the European Union, and 44% to the United States. Bangladesh would renew its campaign to get duty-free or the Generalized System of Preferences (GSP) facilities for its products in the US market when the new US Congress resumes its session in January 2011, reports BSS.

Duty free access of goods will save around US$ 375 million a year helping Bangladesh to divert the money in implementing the projects taken for achieving Millennium Development Goal (MDG), said Bangladesh Ambassador in Washington Akramul Qader in an interview with the news agency at his office here today.He said tariff rate for importing goods from least developed countries except African countries are very high in the USA. Bangladesh now yearly exports goods of around US$ 3.7 billion in USA for which the country needs to pay 16 to 32 per cent tariff, he added. The Ambassador said Bangladesh, as a member of LDC group, has been trying for long to get quota free access of its goods in the US market that is being given to African countries under African Growth Opportunity Act (AGOA).

He said the campaign of getting GSP facilities slowed down when a bill placed by Congressman Mc Dermott in the US House was turned down in November 2009. If we are permitted to duty free export to the US market, it will get a significant price advantage and will be able to increase exports substantially, the envoy said. He said Bangladesh’s pharmaceuticals and ship-building are the two most potential sectors which might have enormous future in the US market. Regarding relationship between Bangladesh and USA the Ambassador said the relationship between Bangladesh and USA now lies on ‘Three D’ Democracy, Development and Denial of space to terrorism’.

“The USA government is happy to see that democracy and development are flourishing in full swing in Bangladesh and leaders of the country are committed to fight against terrorism,” he said. The US government particularly gives high value to the pledge of Prime Minister Sheikh Hasina of showing ‘zero tolerance’ to any sort of terrorism, the envoy said adding that the US- Bangladesh relation is now evolving on the three particular issues.

He said Washington and Dhaka are jointly working for sustaining the democracy and development process in Bangladesh. As food security and public health are vital for development, the US administration is ready to support Bangladesh to build up its food autarky and development of health sector in the coming days, he said. The envoy said the US government is also keen to strengthen relations with Bangladesh in the areas of trade and commerce and fighting terrorism to sustain democracy and pace of progress.

Though Bangladesh is a Muslim majority country, the USA government is pleased to note that it is based on a ‘moderate view’, religious tolerance and women empowerment, the envoy said. The US government is keen to support Bangladesh to strengthen its capacity in these areas.
Md. Fouad Hossain Sarker
Assistant Professor and Head
Department of Development Studies
Faculty of Humanities and Social Sciences
Daffodil International University
Dhaka-1207

Offline sumon_acce

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Re: Bangladesh to renew campaign for duty-free GSP facilities in US market
« Reply #1 on: October 25, 2011, 12:52:54 PM »
Great news for all of us.......Thank you Sir for your post

Offline Tanvir Ahmed Chowdhury

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Re: Bangladesh to renew campaign for duty-free GSP facilities in US market
« Reply #2 on: October 25, 2011, 01:24:41 PM »
Good news for Bangladesh
Tanvir Ahmed Chowdhury

Assistant Professor
Department of Textile Engineering
Faculty of Engineering
Daffodil International University

Offline Subrata

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Re: Bangladesh to renew campaign for duty-free GSP facilities in US market
« Reply #3 on: October 26, 2011, 12:28:44 PM »
It's a marvelous news for the expanding of the business value of BD in the market competition.
Thank you sir for such an important topics, you have shared with us, which will help us to know a lot about it
« Last Edit: October 27, 2011, 08:16:29 PM by Subrata »

Offline Suha

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Re: Bangladesh to renew campaign for duty-free GSP facilities in US market
« Reply #4 on: October 26, 2011, 01:20:47 PM »
Good news.
Engr. Md. Mahfuzur Rahman
Asst. Professor
Department of Textile Engineering
Daffodil International University

Offline AAA

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Re: Bangladesh to renew campaign for duty-free GSP facilities in US market
« Reply #5 on: October 26, 2011, 02:00:34 PM »
It is important to know how an GSP facility is implemented in Textile-clothing sector. GSP facilities are differ from country to country, and usually LDC (Least Developed Countries, like Bangladesh, Sri Lanka) get this facilities.

upto 2010 January, the GSP facilities were based on two stage transformation while from the start of 2011, it is now one stage transformation GSP.

so the question is what is two stage transformation?

look you know that from fibers to finished, the processes are: fiber to yarn, yarn to fabric and fabric to finished  garments. there you can find 3 stages,
for GSP for Bangladesh two stages were: yarn to fabric and fabric to garments,
now the GSP facilities are valid for one stage, like from fabric to garments.

above mentioned facilities have advantages and disadvantages too.

I will let you know in my second step.

please note that this is solely a trade issue, to know these types if issues, one need have basic knowledge on:
-trade regulation
-global trade
-international marketing.

 

Offline Sumon Mazumder

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Re: Bangladesh to renew campaign for duty-free GSP facilities in US market
« Reply #6 on: October 27, 2011, 05:12:50 PM »
Thanks Apu sir and Fouad sir to share your knowledge about GSP with all of us.


Thanks,

Sumon Mazumder
Lecturer
Dept. of TE
FSIT, DIU