A delegation of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) met with the US Assistant Trade Representative (USTR) calling to reduce countervailing duties on exports of goods from Bangladesh.
The US Embassy in Dhaka organized the meeting at the Chief of Mission Residence in Gulshan, on Monday.
US Assistant Trade Representative (USTR) Brendan Lynch, Chargé d’Affaires of the US Embassy in Dhaka Tracy Anne Jacobson, and Labor Attaché Leena Khan were present.
The BGMEA delegation, led by its President Mahmud Hasan Khan, was also accompanied by Vice President Rezwan Selim, Director Faisal Samad, Director Abdus Salam, and Chairman of the BGMEA Standing Committee on FTA and PTA Lutfe M Ayub.
BGMEA President Mahmud Hasan Khan said, “We have already achieved 20 per cent tariff concession, which is a very positive step. However, in reality, he said the average MFN tariff on exports from Bangladesh to the US market is 16.5 per cent and total tariff, including 20 per cent countervailing duty, is about 36.5 per cent, which has created new challenge to the country garments export.
He drew the attention of the US Assistant Trade Representative to further reduce tariffs on exports to continue support the garment industry, the largest private sector employment generator in the country.
The meeting discussed a US executive order, according to which if 20 per cent or more of US raw materials are used in garments exported from Bangladesh, then the 20 per cent additional duty imposed on that product will be exempted on a proportional basis.
The meeting also discussed the proposed amendment to Bangladesh Labor Act 2006. The US Assistant Trade Representative said it is highly expected that the labor law in Bangladesh will be reformed in line with international standards and ILO guidelines.
BGMEA president Mahmud Hasan Khan assured the US Assistant Trade Representative that his board of directors has started working immediately after assuming office in this regard. The board has already held dialogues with 81 labor organizations on various labor-related issues.
He said the trade organization is relentlessly discussing with all stakeholders on the amendment issue. And to protect the industry and employment, specific proposals have been made in discussions with all stakeholders giving importance to the country’s reality, industry.
