BGMEA gives clarification about misleading reports on US sanctions

There is no evidence in support of the speculative media reports containing misleading information about the so called "sanctions" against Bangladesh imposed by the US and implication on trade and cross border transactions, says Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

There are only a few anecdotes regarding the reports, reads a press release issued as a clarification in the general interest of BGMEA members, as well as in the interest of the economy at large.

The Embassy of Bangladesh in the Washington DC issued a press statement on 31 January 2022 which quotes Congressman Gregory W Meeks, Chair of the House Committee on Foreign Affairs as – "We want to make sure that we are not [imposing any sanctions] against Bangladesh and we are still working with the government and people of Bangladesh".

A Bangla tabloid published a news report citing a clause from an Letter of Credit (LC), but an LC copy cannot be an official instrument of a sanction against a country, nor is it a jurisdiction of a private entity to make such a sensitive announcement, since Bangladesh and US have excellent bilateral relations, adds the statement.

Moreover, BGMEA did not receive any information, query or concern from its members, buyers or associates on this matter as yet.

"During our visit to US as part of apparel diplomacy in September last year we met US Government's senior officials, buyers and other stakeholders, where they expressed their interest about our RMG industry and its transformation", reads the release.

We briefed them about how the readymade garment industry in Bangladesh has undergone massive safety overhaul over the last few years.

Bangladesh is the home of the highest number of green garment factories in the world with 157 factories certified as LEED (Leadership in Energy and Environmental Design), by US Green Building Council (USGBC). Among them 47 are LEED platinum-rated and 96 are LEED gold-rated units, while 500 more factories are in the process of certification.

"Needless to mention that despite all the challenges caused by the pandemic, we successfully retained the confidence of the global brands on us. As a result of which we have significantly come back to business, though facing some challenges to meet the cost and to manage the supply chain", adds the statement.

"Our RMG exports to the US market in 2021 has grown by 43.62% compared to 2020, while the growth in EU was 27.74% during the same time. During the fourth quarter of 2021 (that is October-December 2021) export to US recorded 75.71% increase compared to October-December of 2020 which testifies the confidence of the buyers on us", reads the statement.