News Report The much awaited Trans-Pacific Partnership (TPP) trade deal is expected to be signed on February 4 in New Zealand. It’s a matter of concern for Bangladesh ready made garment (RMG) sector as one of Bangladesh RMG competitors-Vietnam-will get upper hand in RMG exports to the Western countries, especially in the USA. After the operation of the TPP deal, Vietnam will export its goods including RMG without any tax. On the other hand, RMG from Bangladesh will have to enter in the US market by paying 15 per cent tax. Bangladesh has already lost its RMG market in US to Vietnam. During the first 11 months of 2015, Bangladesh RMG exports to the USA stood at around US$5 billion. During the same period Vietnam’s RMG exports to the USA stood at more than US$9 billion. BGMEA first vice-president Faruque Hasan said the TPP deal will put Bangladesh in a disadvantageous position to compete Vietnam in the US market. Vietnam will export goods without any tax and we shall have to pay 15 percent tax. He suggested some remedial measures for strengthening Bangladesh competitive ability. The devaluation of taka against US dollar, reduction of cost of doing business and the improvement of the infrastructure facilities were suggested. The BGMEA leader said that countries like China, Vietnam, Cambodia, Brazil, and Turkey devalued their respective currencies against the US dollar to face the export challenges. On the other hand, during the last four years Bangladesh currency was appreciated against the US dollar. Faruque Hasan said if the general devaluation of taka is not possible, then special rate for the export sector should be given. He suggested that US$1=Tk 80 should be fixed for the export sector. The reduction of different licence fees and the bank rate were also suggested. The single digit bank rate is now needed to keep the economy on track, the BGMEA leader said. He also advocated for maintaining gas connection to the garment and the textile sectors, which would ensure smooth supply of electricity. The objective of the TPP is to create world biggest free-trade area, bringing together 12 Pacific Rim countries including the USA, Japan and the Australia. Other nations of the TPP are Canada, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Meanwhile, two separate platforms of the Western buyers and retailers cut business relations with four RMG factories on charge of their failure in implementing workplace safety measures. The factories are: Ashiana Garment and Lovecraft Garment of Dhaka city, Super Knitting & Dyeing Mills in Chittagong and the Prominent Apparels at Badda in Dhaka city.
