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New garments quota policy soon
A new quota distribution policy for the garments export sector Is In the offing to pro mote backward linkage and encourage newcomers In the business.
In an interview with UNB. Commerce Minister M K An war said that under the proposed policy, export perfor mance as well as use of local raw materials would determine the quota entitlement of a garments exporter.
"Our major objective is to use quota as an instrument to develop backward linkage tn the garments sector making it more competitive In the International market." he said dur ing the interview on Wedncs-
Anwar said Bangladesh Garments Manufacturers and Exporters Association (BGMEA) is being consulted in framing modalities of the pro posed quota distribution policy.
Value added In garments export is only 25 per cent on an average and the government has embarked on a move to raise the percentage through strong backward linkage in the backdrop of likely integration of MFA (Multi Fibre Arrangement) with GATT.
MFA has been facilitating the LDC's garments exports by arranging quota from the developed countries.
The Commerce Minister. however, said the government was not apprehending any major crisis in garments export trade with the expected integration of MFA with GATT.
"Wc are aware of the consequences and our Industry is preparing Itself to face any eventuality," he said. The proposed quota policy is a step to guard against the consequences, he added.
Apart from garments, the Commerce Minister, talked about tea exports — the sector facing an unstable International market.
Anwar said that a Working Group, headed by the Commerce Secretary, is busy identifying problems of the tea industry and Its export. The group will immediately make its recommendations for overcoming the problems, he added.
Answering a question, the Commerce Minister said that effectiveness of the facilities offered for the export sector tn the current budget would be reviewed next month. Further necessary action In facilitating exports would be taken after the review, he said.
When hfs attention was drawn to problems being faced by the export sector after withdrawal of all direct fiscal incentives In the current budget. the Commerce Minister declined to make any comment.
■Budget is a matter of the Finance Ministry." he said.