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    European Easing Of Textile Trade GSP Helps Bangladesh'S Clothing Exports

    2010/11/26 11:00:00 50

    Textile Trade Export

    Europe relaxes textile

    Trade

    The GSP (GSP) rules are designed to help the least developed countries to develop trade, so Bangladesh

    clothing

    Exports are expected to be promoted.


    EU acceptance has accepted new origin

    rule

    ((RoO), and is expected to be implemented in January 1st.


    One of the major changes may be the production of clothing, allowing a few garment enterprises to process or make garments one step at a time, that is, directly using fabric processing or making garments, instead of two steps processing, that is, from yarn to fabric two links, and then to the final product.


    Most garments exported by the least developed countries may enjoy EU tariff free access.

    The EU will not consider the origin of raw materials.

    In general, the EU's import duty on garments is 12%.


    The general preferential system is a trade agreement that allows imports from developing countries to enjoy low tariffs or zero tariffs.

    Rules of origin find that imported products originate from countries enjoying GSP.


    Once the new rules of origin are implemented, Bangladesh exporters who use imported fabrics to make garments and then export to the EU will be the beneficiaries of GSP.


    Many woven apparel exporters import the fabric they need from China because Bangladesh's domestic production is backward and can not meet the needs of the knitting sector. Domestic backward enterprises will face competition from foreign countries, as many garment manufacturers import fabrics from China and other countries.

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