BGMEA urges EU to extend GSP trade benefits
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has requested the European Union (EU) to extend the trade facilities provided under the GSP scheme for six more years, rather than three, said a press release on Wednesday.
They argued that such an extension would aid Bangladesh in graduating smoothly from the least developed country (LDC) category and continuing the country's development journey in the years to come.
BGMEA President Faruque Hassan held a meeting with Valérie Hayer, member of the European Parliament, at the BGMEA Complex in Uttara, Dhaka on 12 April.
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Issues including bilateral trade, LDC graduation and its implications on Bangladesh's trade and economy, the current situation of the RMG industry, and its prospects and challenges were discussed in the meeting, the press release reads.
They also discussed the proposed EU GSP scheme for 2024-2034 and how it would impact Bangladesh's trade preferences in the EU market under GSP+ after the LDC graduation.
Faruque Hassan said the specified EU 'safeguards' in the proposed provisions of the GSP scheme would exclude Bangladesh's RMG exports from any tariff preferences though the country is likely to qualify for GSP+ after its LDC graduation.
It would negatively impact the competitiveness of Bangladesh's RMG industry which is the source of livelihood for millions of people, he said.
Given the huge importance of the apparel sector in Bangladesh's socioeconomic development, the BGMEA President underscored the need for continued support from the EU especially in terms of preferential market access for export sectors including the RMG industry, even after the LDC graduation.
He also urged the EU to waive the safeguard textile threshold criteria or redesign the mechanism for Bangladesh in the proposed GSP scheme for allowing the country to reap benefits from GSP Plus after the LDC graduation.
The BGMEA President expressed gratitude to the EU for granting Bangladesh duty-free access to the European market.
Faruque Hassan also briefed the member of the European Parliament about the industry's strides in a circular fashion along with a strong focus on product diversification and technological upgradation to build up strengths in sustainable garment manufacturing.
