Observing the competitiveness of Bangladesh’s exports in the US market, it is important to take into account not only cost and efficiency, but the overall situation.
On December 20, the USITC started an investigation on five countries including Bangladesh at the request of the US Trade Representative (USTR). The USITC will investigate how Bangladesh, Cambodia, India, Indonesia, and Pakistan have captured such a large share of the US apparel market. The commission aims to find out whether the five countries on the list are capturing the market through unhealthy competition.
Garments made by five countries including Bangladesh occupy a large part of the US market. The United States government agency International Trade Commission (USITC) has sought explanations from various parties in Bangladesh while investigating this market position.
In response, BGMEA, an organization of garment industry owners of Bangladesh, said that to see the competitiveness of Bangladesh’s exports in the US market, it is important to take into account not only cost and efficiency but the overall situation.
On December 20, the USITC started an investigation on five countries including Bangladesh at the request of the US Trade Representative (USTR). The USITC will investigate how Bangladesh, Cambodia, India, Indonesia, and Pakistan have captured such a large share of the US apparel market. The commission aims to find out whether the five countries on the list are capturing the market through unhealthy competition.
According to the website of USITC, this hearing started on March 7. And the hearing about Bangladesh will be held next Monday. It is said that the Ministry of Commerce and BGMEA will present their statements orally and in writing in this hearing. Apart from this, even after the hearing, there will be an opportunity to present written statements till March 22. And on August 30, the commission will hand over its investigation report to the trade representative.
In its response to the USITC, BGMEA said Bangladesh has the largest number of lead-certified eco-friendly factories. Currently, there are 209 lead-certified factories in Bangladesh. Apart from this, another 500 factories are in the process of receiving lead certification. Advanced technology has been used in these factories. Also, their working environment is safe. And because of this, Bangladesh is currently the safest clothing-producing country in the world.
According to BGMEA, the cost of production in Bangladesh has increased abnormally recently. Electricity prices increased by 25 percent, gas prices by 286.5 percent and fuel oil prices by 68 percent. Along with these price increases, the cost of transportation has also increased. From July 2023, the Central Bank of Bangladesh has increased interest rates to control inflation. Apart from this, the overall charges of banks, city corporation charges, and various registration fees have also increased. As a result, the overall cost of production also increased. To see Bangladesh’s export competitiveness, it is important to consider not only cost and efficiency but also the overall situation.
A high-level US delegation visited Dhaka last month. During that visit, they emphasized the improvement of the labor situation in Bangladesh. They particularly expressed concern over issues such as the right of workers to assemble and form trade unions, and free discussions with the government on amending the law on the trade union registration process and brought them up in discussions with the government.
In the middle of November last year, US Secretary of State Anthony Blinken said that the United States would impose various sanctions, including trade sanctions, on those who take away workers’ rights and intimidate and attack workers around the world. After the announcement of this policy, the Bangladesh Embassy in the country also sent a letter to the Bangladesh Ministry of Commerce, fearing the ban.
In these matters, Foreign Secretary Masood bin Momen told the media that Bangladesh has told the United States that if this investigation is done on an objective basis, they can do it. Dhaka hopes that there will be no political motive in this investigation. Bangladesh will present its position in the hearing. And if something anti-competitive comes up in the investigation, then Bangladesh will take it into account.
