DHAKA: Bangladesh government will again demand duty-free market access for garments to the US, as Bangladeshi businesses have to pay exorbitant duty for exporting apparel items to America.
The demand will be placed at the second meeting of Ticfa (Trade and Investment Cooperation Forum Agreement) in Washington this May.
The Ticfa, signed in November 2013, is a platform to resolve trade-related disputes between the two countries through discussions.
“We will start preparing our agendas for the meeting from next month. Our aim will be to increase exports to the US,” Hedayetullah Al Mamoon, senior secretary to the commerce ministry told Customs Today.
Among its competitors, Bangladesh is one of the top duty payers for export of garments to the US market.
Bangladeshi exporters now pay 15.61 percent duty to the US for exports of garments that account for 81 percent of the country’s total exports and 95 percent of the total exports to America.
China pays 3.08 percent duty to the US for garment exports, while Vietnam pays 8.38 percent, India 2.29 percent, Turkey 3.57 percent and Indonesia 6.30 percent.
Bangladesh had also demanded the duty benefit at the first Ticfa meeting in Dhaka in April last year.
Mamoon said, at the second meeting, the government will also highlight the progress made for ensuring workplace safety that was demanded by the US for restoring generalised system of preferences for Bangladesh.
“We have met most of the conditions of the US. I hope Bangladesh will regain the GSP when it will be reintroduced for all beneficiary countries,” Mamoon said.
The GSP scheme has remained suspended for all countries since July last year.
The United States Trade Representative, the chief trade negotiation body of the US, suspended Bangladesh’s GSP on June 27 last year, citing serious shortcomings in workplace safety and labour rights.
In fiscal 2013-14, Bangladesh exported goods worth $5.59 billion to the US and imported products of $801.10 million, up from $5.41 billion and $537.80 million respectively from the previous year, according to the commerce ministry.
