Bangladeshi apparel manufacturers are concerned about the US sanctions on the former top officials of the Rapid Action Battalion (RAB) but hope that the sanctions will not affect trade relations between the two countries.
“The US is one of the largest destinations for our apparel items. We are concerned about the sanctions on some top former RAB officials, but we are not losing hope. We are doing our job perfectly and are right in our place,” said Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
To avoid any kind of trade sanctions, the BGMEA is focusing on development, the safety of workers, and protecting their rights, he also said while speaking at a dialogue organized by the Economic Reporters’ Forum (ERF) on Wednesday.
He also urged that all political parties of the country organize their programs peacefully for the upcoming national elections, considering the national economy.
In a response to a question, he said that Bangladesh will face many new challenges after the LDC graduation.
He also said that they are working to extend the grace period to Europe from three years to 10 years, and then they will also work with the GSP Plus preferences.
“2022 will be an important year for investment in backward linkage, and there will be a big investment in our spinning, knitting and dyeing sectors,” he added.
Hassan also said that they are emphasizing Preferential Trade Agreements, Free Trade Agreements or Partial Trade Agreements with different countries.
Bangladesh exported more than $4 billion in a single month in December, and industry insiders hope that in the future, Bangladesh will get more orders.
Asked if the country is capable of exporting products worth $7 billion to $8 billion per month, he replied that Bangladesh is gradually getting ready to cater to garment work orders worth that amount.
“Currently, we do not have the capacity to cater to work orders of $7-$8 billion per month. However, we are improving our capacity gradually," he added.
The NBR has some issues that are causing us to get stuck and many entrepreneurs are suffering, Hassan further said, adding: “We are working on these, next week we will sit down with the NBR again and address the issues. If these can be solved, it will be much better for us.”
BGMEA is currently working on updating the real number of active factories and the number of workers, hopefully the number will be known shortly, he also said.
Moreover, work is underway to bring everyone under RSC and strengthen this initiative, he informed.
The apparel leader also said that all non-member factories must be members of at least one organization — the BGMEA or BKMEA.
Moreover, he also urged the apparel manufacturers to be careful so that they can prevent the Omicron variant in the garment factories.
In response to a question about the fair price of garment items, he said that the prices of the products have not increased compared to the increase in the price of raw materials, but they are getting higher prices than before.
“Moreover, the wages of the workers are also increasing and many new jobs are also being created,” he added.
ERF General Secretary SM Rashidul Islam coordinated the dialogue while Vice President M Shafiqul Alam was also present.