US retailers and brands have increasingly continued sourcing apparel items from Bangladesh as the country's export to the US, the single biggest export destination for the country, increased by 4% or $120m during the December-June period of the last fiscal year.
The exports, with the backdrop of the consistent pressure from the North American country to improve labour rights situation in Bangladesh, were more than $3bn in the period while US export to Bangladesh increased by 22% to $389m, according US official figure.
However, the picture may not be that much rosy this year as the impact of Tazreen Fashions fire and collapse of Rana Plaza is likely to be felt with most of the international buyers taking a cautious strategy of placing orders.
The readymade garment sector did not feel much of the impact of the Tazreen Fashions fire and received almost smooth flow of orders even after the incident, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Atiqul Islam told the Dhaka Tribune.
”We did not hear about the EU Accord or the North American Alliance asking improvement in the labour conditions after the Tazreen disaster, but after the Rana Plaza collapse the whole scenario has changed,” he said.
The impact of Rana Plaza disaster would be felt in the November-December shipments as most of the buyers have taken cautious strategy on placing orders to Bangladesh, he added. Usually a manufactur-er gets 120 days or four months lead time to ship goods.
The association has taken a number of steps to improve the conditions and always remains in close contact with the international buyers and embassies.
“We invited the buyers and appraised them about the development and also sat with relevant officials of different embassies,” Atiq said.
BGMEA is planning to sit with the officials of different embassies this month to let them know about the recent developments, he added. “We have formulated policies of subcontracting and imposing it strictly.”
Under the new subcontract policy, factories of subcontractors must have insurance coverage.
“We included the clause as the insurance companies have vigorous screening procedures and the factories must ensure proper fire safety and comply with building code,” the BGMEA president said.
After the collapse of Rana Plaza, all factories relocated their generators to ground floors as the vibrations of generators caused the collapse of the Plaza, he said.
US ambassador to Dhaka Dan Mozena after a meeting with Foreign Secretary Md Shahidul Haque on August 8 told the Dhaka Tribune that labour rights, fire safety and factory soundness are the three ma-jor issues to be addressed under the US action plan, he added.
Bangladesh in December will get the opportunity to place its case for restoration of GSP before the US authorities as the GSP hearing would take place that time, Mozena said.
US President Barrack Obama on June 27 announced suspension of GSP facility for Bangladesh on the ground of poor labour rights situation.
The government and owners have time bound commitment to fulfill a number of pledges with the help of International Labour Organisation for the survival of over $20bn apparel industry, employing over four million people.