Bangladesh Garment Sector in a Great Trouble

Bangladesh Garment Sector in a Great Trouble because of TPP Agreement 

Md Farhad Hossen
Daffodil International University
Email: farhadshajiv786@gmail.com  

 

Bangladesh's garment industry is an important sector for the economic development of the country. It acts as a vital role for the economic development in Bangladesh. But for some time now Bangladesh garment sector, enhance the market a little pressure. There is more pressure may rise again in this situation. Twelve of the countries with the biggest market for exports of US Trans-Pacific Partnership, or TPP agreement could be a major problem in Bangladesh's garment industry. The final stage of the negotiations on the draft agreement with the countries concerned. In apparel exports to those 12 countries Vietnam, Bangladesh's most competitive country. According to analysts , in this situation Bangladesh must take the beneficial step on the duty-free export to the United States for improve relationships. That is why, they suggested to review the GSP duty-free access as well as the increase bargain bill to the to the US Congress .

According to the information of United State Trade Representative, or USTR, the 12 countries which are going to sign in TPP are United States, Canada, Australia, New Zealand, Japan, Brunei, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam. They controls 40% of world economy. However, the businesses, the most disturbing news for Bangladesh is Vietnam attached with TPP. Vietnam's exporters give 8 percent to 5 percent of duty to the garment exports to the United States. On the other hand Bangladesh give 17 %. For this large number of percentage the relation between Bangladesh and garment exports to the United States are getting down. In 2014 Bangladesh lose five and a half percent exports to the United States. On other side Vietnam's exports have increased. Last year, exports increased by 12 percent in this sector.

In the meantime, Vietnam already to overtake China and Bangladesh to finalized plans over the next ten years with American Chamber of Commerce in Vietnam. In 2025 in Garment exports of the United States increase there exports double in this plan. On other side Bangladesh and China dealing with us exporters remain same to 2025 .

In the current 2015 Vietnam's exports to the US market around 50 million US dollars. In 2025 has set a target of US $ 990 million. On the other hand the United States, China and Bangladesh's garment exports this year has been four thousand 570 million dollars. It has been a slight increase in 2025, four thousand 590 million dollars.

Exporters of Bangladesh said that “The garments sector of Bangladesh troubles hard. They thought this is because of specially Tazreen fire and Rana Plaza collapse. TPP agreement will reduce exports on US market".

In the former co-president of BGMEA, ABM Shamsuddin said the same thing about export on US market . And also said that Vietnam is the strong competitor against Bangladesh. He thinks if the TPP agreement fulfilled with 12 countries Bangladesh will trouble harder than before. He appeal to the Government of Bangladesh to notify and increase the benefit of GSP for better future of Bangladesh garments and build up the position on US market.

6:03 AM