Clips from the Press


CITIBANK-CPD-BGMEA DIALOGUE
 Cautious optimism over RMG export

NEW AGE
March 19, 2004
 Staff Correspondent

 Back to Clip Index

A CENTRE for Policy Dialogue presentation at a Citibank-CPD-BGMEA event on Thursday, sounded `cautious optimism' and held that export-oriented garments industry in Bangladesh will be able to survive the quota-free regime under the WTO rules and bindings coming into force beginning next year. The Centre expressed the optimism basing on a study and analyses of comparative data and comparative advantages of the RMG exporting countries. "Early signals from the MFA phase-out in the US market shows that Bangladesh has been able to expand her export volume," said Prof Mustafizur Rahman, research director of the Centre for Policy Dialogue (CPD). Prof Mustafiz, in his keynote paper, said that the quantity of woven garments export increased by 55 per cent in the last year compared to seven years ago, indicating Bangladesh staying-power in the global market as a major player. "US buyers are considering Bangladesh one of the major source as JC Penny, Wall Mart, GAP, K -Mart and other big buyers are coming to Bangladesh and setting up offices," he added. The RMG millionaires, however, would link even more policy support and concessions from the government in the forms of setting up central bonded warehouse, reduction of bank rates and efficient port facility as 'pre-requisite' for the sustainability of the export performance. "We don't want money from the government, we only need continuous policy support" said Anisul Huq, the current president of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA). Anisul Huq said interest rate should be down to seven per cent, bank charges further reduced, besides allocating 50 per cent of the commercial banks' reserve kept with Bangladesh Bank for soft financing to the sector. They were speaking at a dialogue what was titled as `Surviving in a Quota-free world: Will Bangladesh make it?' jointly organised by BGMEA, CPD and Citibank NA at the Sheraton hotel. Commerce minister Amir Khosru Mahmud Chowdhury, the chief guest at the event that was overflowing by presence what was termed by the moderator Debapriya Bhattacharya as ‘an intimidating presence' of the top guns of the industry, the diplomats, the bankers and the academics, and of course the government luminaries said that government had been providing necessary supports to the sector. "We have reduced the port charges by 20 per cent, lending rates of banks have also come down," he said in the dialogue' Acknowledging the importance of bonded warehouse facility for the manufacturers, Khosru said that he would take it up with the finance minister for providing the facility. "While the industry can demand policy support from the, government, the initiative for modernisation and innovation for improving competitiveness has to come inter-alia from the industry," he said. Taking part in the discussion, Harry K Thomas Jr, the US ambassador in Bangladesh said the country has to improve its infrastructure, especially sea-port as well as eliminate corruption. “All these are in your court and you cannot expect that USA, Europe or Japan will do these for you," he said. Manjurul Haq, president of the Bangladesh Knitwear Manufactures and Exporters Association (BKMEA) said that price of domestic yarn should be competitive and bonded warehouse facility was imperative for ensuring uninterrupted supply of inputs and machineries. Shirin Akhter of Karmajibi Nari said that garments owners would have to ensure minimum workers' rights. Bangladesh garment labour is the cheapest, because it is most exploitative. Mamun Rashid, chief executive officer of the Citibank said that a concerted effort was needed to face challenge and exploit the new opportunities so that the industry could turn the challenges also into opportunities: Presided over by the CPD executive director Dr. Debapriya Bhattacharya, the dialogue also featured the interventions by commerce secretary Suhel Ahmed, former minister Anisusl Islam Mahmud, Mercantile Bank managing director M Taheruddin and others.