Bngladesh: New EU rules likely to promote RMG exports from Bangladesh
Europe’s relaxed rules, which are meant for the least developed countries (LCDs), under generalized system of preferences (GSP) in case of textile trade, are likely to promote the garment exports from Bangladesh. The new rules of origin (RoO), which have been accepted by the European Union is expected to be…
Egytex News Desk
Source: www.fibre2fashion.com
One of the major changes that is likely to be permitted in case of several RMG units is that, they can go for single-stage processing or manufacturing readymade garments directly from fabric in place of the two-stage processing, where the manufacturing starts from the yarn stage and passes through the fabric stage to reach the ultimate product. Most of the garment items, exported from LDCs, are likely to enjoy duty-free access to the European Union.
Once the new rules of origin are enforced, the exporters, using the imported fabrics for producing readymade garments in Bangladesh and then exporting them to the European Union, are likely to avail the GSP benefits.
A large number of woven apparel exporters import the required fabric from China as the backward linkage sector is not as dominant as the knitwear sector. The backward linkage sector within the country is expected to confront some competition as many producers of readymade garments import the fabrics from countries like China.
Source: www.fibre2fashion.com
From the Egytex news archive, first published on 25 November 2010. Figures and names are as reported at the time.
