The New Nation - Internet Edition

Syful Islam

US textile bosses are opposing passage of the new trade bill allowing duty free access of goods of least developed countries in their market fearing massive blow to their local industry, informed sources said.

"They fear that if the bill is passed, the US textile industry will be hard hit because the industry exports US12 billion a year in yarns and fabrics to western hemisphere countries. These countries will not be able to compete with Bangladesh and Cambodia," a communiqué between Ministry of Commerce and the Bangladesh Embassy in US revealed.

A recent meeting of the officials of Bangladesh Embassy in US, American Manufacturing Trade Action Coalition and National Council of Textile Organisations revealed that the US lobbies are opposing the bill fearing that the shrinking US textile and apparel industry may even shrink faster if the bill is passed.

The African Countries find it difficult to compete with apparel 'superstar' Bangladesh even with the tariff and quotas.

They fear to lose in competition, as cost of Bangladesh and Cambodian apparel is US$2.44 per square metre against the African cost of US$3.92.

As the African countries lack capacity and technologyical skill to compete with big players like Bangladesh and Cambodia the African lobbies are opposing the bill, too.

The American Manufacturing Trade Action Coalition and the National Council of Textile Organisations are concerned about the possible impact of expiry of quota on Chinese export to US on January 2009. In this challenging moment they do not want to face more competition allowing the duty free access of goods from LDCs.

Congressman Jim McDermott introduced "The New Partnership for Development Act of 2007" bill in the US Senate on October 18.

The trade bill, if passed, will allow duty and quota free access of LDC products to the American market.