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Export of 6 million duty-free RMG pieces to India
Detail
Garment manufactures accused India of back tracking on its high profile pledge to allow duty free import of 6 million pieces of Bangladeshi ready made garments (RMG). Instead, they claim, Delhi is only offering preferential tariff rates and attaching so many conditions that the agreement is in danger of becoming meaningless. Six million pieces is not that significant to-
the US$10 billion earning Bangladeshi garment makers. Bangladeshi producers will only be interested if the offer is for duty free access, otherwise it means nothing, said SM Fazlul Haque, outgoing President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA). In a letter to the Commerce Ministry, Delhi urged Bangladesh to accept a preferential tariff. When the offer was first made India had talked of duty free access. Delhi also demanded a quota monitoring system be set up. Bangladesh has yet to respond to the Indian draft memorandum of understanding. Apart from the apparent withdrawal of the duty free offer and the monitoring requirements, Bangladeshi RMG makers have also reacted to transport conditions Delhi wants to impose. Under these conditions, exports of RMG products are allowed only through six selected land ports. With no current end in sight to the negotiations, garment exporters fear it could be at least a year before any agreement is reached. There are also concerns that India’s imposing new non-tariff barriers will further weaken any eventual agreement.
 
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