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RMG exports to US

Impasse on quota continues

By Govinda Shil
The standoff between the United States and Bangladesh on garments quota to US market continued to dog prospects of ready-made wear exports during the current fiscal.
While exporters are hopeful about early resolution of the impasse, officials say they are still uncertain on the outcome of the negotiations which ended in Washington November 12. officials said.
Bangladesh exhausted its full 600.000 pieces quota in two categories, for suits and jackets, in the American market by October 22. US is the biggest market for Bangladeshi ready made wear.
During the first quarter of the current fiscal garments and knit wear exports to US totalled 446 million dollars.This year's target from textile exports is set
at 3.483 million dollars and half of it is epxected from US market.
Commerce and Industries Minister Tofail Ahmed. MP headed a strong team of officials for talks with US officials pleading for advance allotment of quota from the next year’s portfolio. The US quota year will be ending this December.
Bangladeshi exporters earlier urged the US Department of Trade and Commerce through Bangladesh's mission in Washington DC permitting them to continue shipment of the suits and jackets.
US buyers had earlier placed huge orders for these products, the exporters said. A few shipments have already arrived in New York port awaiting clearence from US customs.These were sent by ex-
porters hoping a resolution of the Dhaka-Washington dispute.
The US government is yet to decide whether it will allocate advance quota for which Dhaka has been lobbying Washington DC for a month. rtVe expect a positive result next week," Nurul Huq Shlkder.a Vice-President or Bangladesh Garment Manufacturers and Exporters Association (BGMEA) says
Commerce minister Tofael Ahmed says he is not certain what would happen to the shipments lying in New York port for delivery if the US government declines.
Some 30.000 pieces of garments,worth about three million dollars, have been stuck in New York. BGMEA's lobbyist in the US, former Congressman Stephen Solarz,is also trying to break the impasse.
"I have requested the US au-thorttles to give us a 15 per cent extra allotment from our next year's allocation." Tofael Ahmed said.
He said he would not like to make such a request which may or may not be honoured. "May be we are poor, but we have prestige."
The minister said he would urge exporters to limit their exports within the allotted quota from now on.
He also said domestic textile industry in the US faces problems for advance exports by some countries.
Exporters said advance allotment of quota had been a usual practice between these two countries. The advanced export is generally adjusted from the following year's quota allotment.