Garment sector eager to import man-made fibres from US
During the meeting, various issues of mutual interest were discussed, with a particular focus on strengthening bilateral trade relations between the US and Bangladesh
After announcing a major plan to import cotton from the United States to reduce the trade deficit, Bangladesh's garment sector is now also keen to increase its imports of man-made fibres such as polyester and nylon from the US, a sector currently dominated by China.
Leaders of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) met with a US Embassy delegation in Dhaka today (13 August), and expressed interest in importing man-made fibres, if produced by the US textile sector, according to a BGMEA press release.
BGMEA President Mahmud Hasan Khan Babu and other senior RMG leaders were present at the meeting.
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In response to BGMEA's interest, Foreign Commercial Service Attaché Paul G Frost said they would talk to relevant US government departments and provide further details, the release said.
The US Embassy delegation included Labour Attaché Leena Khan, the Foreign Commercial Service attaché, and Foreign Agricultural Service Attaché Erin Covert.
A recent US executive order allows garments exported from Bangladesh to be proportionately exempt from a newly imposed additional 20% duty, provided that at least 20% of the raw materials used in these garments are sourced from the United States.
During the meeting, the BGMEA president mentioned the the 20% duty exemption he expects to come out of the trade talks, but participants from the US embassy made no comment or discussion about it.
At the meeting, the BGMEA president commented on the possibility of establishing a warehouse near Chattogram Port to expedite cotton imports from the United States. It was mentioned that this could be set up as a Bangladeshi initiative, a US initiative, or a joint venture.
One of the embassy officials had asked if the BGMEA president had heard of any developments in this area, as it is something the US government has been asking the government of Bangladesh to do for three years or more.
Issues regarding the domestic gas and electricity situation and labour rights also received due attention during the meeting. BGMEA President Mahmud Hasan Khan said that maintaining stable labour conditions in the garment sector is a top priority.
He informed the US delegation that since taking office, his board has engaged in dialogue with 81 workers' federations to establish harmonious industrial relations. He also briefed the delegation on the progress of legal reforms aimed at ensuring labour rights and welfare.
The US delegation emphasised that aligning Bangladesh's labour laws with international standards is an international expectation, supported by the ILO, the European Union, and others. BGMEA leaders stressed the importance of maintaining close communication with the US Embassy on labour-related matters to ensure clarity and avoid any misunderstandings.
BGMEA Senior Vice President Inamul Haq Khan Bablu, Vice President Md Rezwan Selim, Mijanur Rahman, Vidiya Amrit Khan, Directors Mohammad Abdur Rahim, Faisal Samad, and Sheikh Hossain Muhammad Mustafiz also attended the meeting.
