The New Nation - Internet Edition

AMERICAN lobbyists, according to a recent newspaper report, have suggested that the Bangladesh foreign ministry 'should play a leading role' in persuading lawmakers of the United States to relax or modify some provisions of the new bill in the Congress that offers preferential market access for garment from all the least developed countries to the US market. In this regard, the lobbyists mentioned specifically, that Bangladesh should pursue the 'relaxation of the clauses' of the new bill - New Partnership and Development Act 2007 - that propose higher local value addition and stringent compliance for Bangladesh and Cambodia. The NPDA 2007 is a new bill pending before the US Congress which proposes that only after meeting some conditions should the apparels of the least developed countries get duty-free access that is provided only to some African countries at present. Bangladesh for protecting her interest should approach the African countries in this regard through the foreign ministry level to make its efforts effective in line with those countries enjoying the benefit.

According to the suggestions made by the lobbyists, US Congressmen should be approached officially maintaining regular contacts so that they understand the issues in real perspective and act accordingly to consider those clauses of the new bill for relaxation to benefit Bangladesh. The Bangladesh government has already formed two task forces under the commerce ministry to pursue the matter. One

task force headed by the commerce secretary comprises leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and

representatives of different ministries and leaders of business forums. The other task force under the leadership of executive director of the Centre for Policy Dialogue consists of individuals and members of the organisations concerned.

Both the committees have been assigned to conduct separate studies on ways to obtain duty-free access of the Bangladeshi products to the US market.

America is the single largest market for Bangladeshi garment and of the total earning of $ 9.2 billion from garment export in the last fiscal year about $ 3 billion came from the US. The NPDA provides an opportunity for Bangladesh as apparel sales to the US has been threatened by stiff competition from Chinese, Vietnamese and Indian exporters. Bangladesh's NPDA mission should be effective to persuade the US to give duty-free access and convince the African governments that this will not harm their exports. The NPDA proposes that Bangladesh and Cambodia, as exporters with advanced capacity, need 35 per cent value addition to garment to be exported to the US and there is scope to convince the US to reduce or modify such requirements. Bangladeshi apparels exported to USA require around 16 percent duty, which makes them relatively more expensive. Moreover, Chinese, Vietnamese and Indian exporters, who are more advanced in backward and forward linkages, are now desperate to expand their sales to the US.