New EU Trade Rules Impacting Bangladesh Textile Industry

A Bangladesh business leader said that Bangladesh had been allowed to enter the EU market after the EU allowed Bangladesh to make use of ready-made garments made from other local raw materials. Spin Product manufacturers face a deep crisis.

According to the new EU rules of origin, even if the fabric of other countries is used, exporters can enjoy preferential policies for tax-free access to the 27 EU countries. The European Union is the largest clothing market in the world.

The EU rules of origin for the past 12 years have provided an umbrella for local textile factories, because the rules of origin require exporters to mainly purchase Bangladesh domestic fabrics, only in this way can they enjoy the EU's tariff free preferences.

As the EU relaxed the import rules from January this year, Bangladesh's import volume poses a great threat to domestic enterprises.

In the first 6 months of this year, Bangladesh made ready-made clothes, officials said. Exit The amount of imports from China alone reached 730 million Taka (US $10 million), up from 130 million Taka (US $2 million) in the same period last year.

Imports grew by 462%, which is an alarming number for domestic manufacturers.

Bangladesh garments and garment exporters import fabrics from different countries, mainly importing fabrics from China and India.

Bangladesh textile industry has more than 1300 major textile manufacturing plants, with a total investment of more than 4 billion US dollars.

Garments and garments are the main export earning industries in Bangladesh and the largest employer industry in the country, next only to agriculture.

Textile manufacturers said the EU's umbrella expired in December 31, 2010, which is the main reason why local entrepreneurs set up 380 home textile mills, 400 weaving factories and 260 printing and dyeing factories.

Bangladesh insiders say India, Pakistan, China And Turkey manufacturers are taking advantage of the dumping of their fabrics to Bangladesh's textile industry.

Bangladesh ready-made clothing Earlier, the Association asked the government to provide cash incentives to protect Bangladesh investment and enhance the competitiveness of Bangladesh products, because other competing countries provide incentives to their domestic textile industry.