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Free access of Caribbean, Sub-Shaharan Africa nations to US

Bangladesh to face problems in RMG export: CPD study

By Rafiq Hasan
The recent changes in the US trade policy will affect garments export from Bangladesh to the US markets as it provided extra facilities to a number of Third World countries which are emerging as major competitors to Bangladesh's apparel products, according to an Independent study.
"A zero-tariff and quota-free access for the apparel products of the Caribbean basin countries and Sub-Saharan Africa states will definitely pose a formidable challenge to Bangladesh in the near future." the study said.
The Centre for Policy Dialogue. a prominent think-tank of the country, conducted the study and submitted it to the ministry of commerce this month, the study was done under the leadership of CPD Executive Director Dr Debaprlya Bhattachariya.
The US Congress and Senate recently passed an act named Trade and Development Act of 2000 (TDA 2000) allowing special trade benefit to a total of 72 countries.
The law comprises African growth and opportunity act covering 48 countries and the United States-Caribbean basin
Trade Partnership Act with 24 countries.
The law provided duty-free and quota-free access of textile ,nid apparel products for the designated countries to the US markets and it would be effective for eight years from October 2000 to September 2008.
Evaluating the existing trends of apparel business, the study observed that of the two groups,the Caribbean countries are more important because they are one of the major sources of apparel import by USA.
In 1999 alone, the Caribbean countries exported apparels valued at 8.92 billion US dollars to the US markets. Apparel export from the Dominican Republic. Honduras. El-Salvador and Guatemala was worth more than one billion dollars each in 1999. The figures were 2385.19 million. 2164.23 million, 1363.49 million and 1243.50 million dollars respectively during the year.
Bangladesh also exports more than one billion dollars worth of apparels to the US market every year. The figure rose to 1753.85 million dollars during the year 1999.
The study report noted that many of the SSA and CBI (Caribbean Basin) countries would acquire competitive edge In the US market within the context of a quota-free and duty-free regime.
However, the extent they would be able to utilise this opportunity would depend on their supply capacity.
The study reveals that there were a handful of CBI countries which compete with Bangladesh for the US markets in a number of apparel items of high export Interest to Bangladesh
Availability of a quota-free and duty-free regime will allow them to expand their apparel export to US markets which may lead to trade diversion in favour of the CBI countries in the short run from other sources Including Bangladesh," the report said.
The report further observed that a detail Impact study should be carried out as early as possible. The study should look at the price competitiveness issue subsequent lo the TDA 2000. The supply and demand aspects also may be Included in the proposed study, it said.
It also suggested the government a number of steps for consideration. It includes the need for conclusive assessment, seeking clarification on the LDC treatment coverage, call for extension of the facility on bilateral basis, call for extension of the facility on LDC basis. taking the issue to the multilateral organisations Including WTO, and increasing campaign in the USA.
Suggesting campaign In the USA. the report said that a joint high-level team should be sent to USA for presenting Bangladesh's case to the Congress and Department of Commerce, Textile Office and Apparel as well as US media.
Bangladesh citizen living In the USA may be encouraged to approach their respective Congressmen and Senators to seek support for Bangladesh's case.
The service of a lobbyist may be hired in the USA to promote the case of Bangladesh in the US Congress and Senate.
The report also suggested adequate preparation so that the prime minister can place the issue to the US president during her visit to Washington in October this year.