The New Nation - Internet Edition

Staff Reporter

Import of textile machinery as well as investment in Bangladesh marked a sharp fall this year due to unstable political situation in the country.

"Unstable political situation is prevailing… nobody knows when the election will be held. Investors are lukewarm about their investment in the country," export-marketing director of the Frankfurt-based VDMA Textile Machinery Association, Ranger Strauch, said this yesterday at a press conference at Hotel Sonargaon ahead of the 2nd German Textile Technology Symposium.

Industries Adviser Geeteara Safiya Choudhury is expected to inaugurate the two-day long symposium at Hotel Sonargaon on Monday.

VDMA Association is organising the symposium with support from the Bangladesh and German governments to showcase high profile German textile machinery.

More than 20 companies from Germany will be present with textile engineers and experts to explain and present the latest technology to further modernise the export-oriented textile mills.

Ranger Strauch informed that textile machinery, parts and accessories worth 59 million Euro were imported into the country from Germany in 2006. The amount will not exceed 54 million Euro this year.

Economic and Press Counsellor of the German embassy in Dhaka Holger Fraider replying to a query of The New Nation said the European GSP facility for Bangladeshi textile products has been 'misused' which compelled Germany to impose 12 per cent import duty on Bangladeshi products. "A large number of documents pertaining to the general system of preferences were falsified," he said.

"Somebody took advantage of the facilities. Therefore the German finance ministry imposed the 12 per cent duty," he added.

The official said Bangladesh government was expected to send a delegation to the European Union and Germany to resolve the issue.

Holger said Bangladesh will have to ensure quality of its textile products to survive in the European market as the EU is withdrawing restriction on Chinese import by the end of this year.