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BGMEA Urges Canada to Take Steps to Neutralize Impact of GPT review

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By A Pro-Bangladeshi
Bangladesh business news
The Canadian government has been requested by Bangladesh Garments Manufacturers and Exporters Association (BGMEA) to ensure that the General Preferential Tariff review does not put any impact of the duty free apparel exports to Canada. The proposed GPT review will have a detrimental effect on the readymade garments industry of Bangladesh. Hundreds of factories will have to be closed down and millions of people will be jobless.

The apex apparel body of Bangladesh expressed their concern of the proposed review of the General Preferential Tariff and explained how terrible the impact will be for Bangladesh. It was almost the end of last year that Canadian government decided to review their GPT and proposed some changes in it. According to the review, 72 developing countries will not have GPT facilities which include China and India. Bangladesh has been sent out from the Least Developing Countries category.

BGMEA has requested the Canadian government to take three measures as according to them, Bangladesh will be most harmed by this review. BGMEA has requested that Canada adopts the single state RoO for its Least Developed Countries Tariff as the entire readymade garment industry of Bangladesh is dependent on imported fabric and yarn.

According to the RoO proposed by Canada, any country would be able to enjoy duty free facilities to a country as long as the raw materials are important from that same country. Bangladesh imports the raw material fabric from China mostly. So approving the reviewed GPT will end Bangladesh’s duty free facilities to export RMG to Canada. The proposed GPT will increase Bangladesh’s export duty from 0 to 18% where it will not change anything for countries like India, China, Indonesia and Turkey.

As RMG is the largest industry in Bangladesh, if the proposed GPT is implemented then it would have a very bad impact on the total economy of Bangladesh. This is why it is very important for the development of the country to neutralize the reviewed GPT.


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