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 Policy supports vital for facing post-MFA regime

The News Today
March 19, 2004
 News Report

  

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It is possible for Bangladesh to survive, consolidate, sustain and expand even after the phaseout of multi-fibre arrangement in 2004 if the government comes up with some policy supports to face potential challenges of the post-MFA era. Speakers at a dialogue meeting on "Surviving in a Quota-free World: Will Bangladesh Make it?" expressed such an optimism urging the government to take some immediate steps including reduction of the bank interest rate, port and shipping charges and setting up of a central bonded warehouse for the survival of the readymade garments (RMG) sector. Centre for Policy Dialogue (CPD), Citibank NA and Bangladesh Garments Manufacturers and Exporters' Association jointly organised the dialogue at a city hotel on Thursday. Addressing the dialogue Commerce Minister Amir Khosru Mahmud Chowdhury said the government is ready to provide allout supports to the country's RMG sector to face the challenge of post MFA era. As a matter of fact the government policy for the garments textiles and clothing is very much liberal and the main job of the government is to play the role of a facilitator, said the commerce minister. He also underscored the need for exploring duty-free access of garments products to the developing countries including India. Regarding the proposal for the central bonded warehouse. Commerce Minister Amir Khosru Mahmud Chowdhury said that a central bonded warehouse might be set up if the Ministry of Finance approves. US Ambassador Harry K Thomas said. "if you don't improve 'your capacity, it would be very difficult to face the post MFA situation." The government of the-USA strongly believes that Bangladesh has the capacity to achieve and succeed, but the country's infrastructure and power need to be improved and the large-scale corruption also needs to be curbed, said the US Ambassador. BGMEA president Anisul Huq urged the government to come up with some crucial policy decisions to help the country's RMG sector to survive saying. We don't need money from the government to survive, we want some policy decision from the government in a bid to face the nearing challenge of the quota free world". Chaired by CPD Executive Director Dr Debapriya Bhattacharya, the dialogue was al-so addressed, among others. by Commerce secretary Suhel Ahmed, GM Kader MP. former president of BGMEA Md Moniruzamman and other business leaders, NGO and civil society activists. Bangladesh should continue to press for zero tariff access to the US market as about 310 million US dollars worth tariff is imposed annually on Bangladesh's export to the US market, observed Prof Mustafizur Rahman. Research Director of CPD, during his key note presentation. He also said, "With MFA phase-out US market for apparels is going to expand dramatically as incompetitive US firms are compelled to make their exit. There will be enormous opportunities for competitive players to make new breakthroughs in US market”.