BD needs more low-cost financing for DEA, remediation works, he says Dhaka, Aug 25 (UNB) – Describing Bangladesh’s progress in transforming its RMG sector, Commerce Minister Tofail Ahmed, now in Germany, has said the international community has the shared responsibilities to advocate for fair the price of Bangladesh’s RMG products “We’re committed to making our RMG factories compliant. We’ve, therefore, undertaken various legal, administrative and institutional reform programmes. These have involved huge cost of compliance and are eroding the comparative edge,” The Commerce Minister also said Bangladesh needs more financial assistance and low-cost financing for Detailed Engineering Assessment (DEA) and remediation works. He was addressing global audience at a social dialogue on occupational safety in the supply chain, being held in Berlin. The Federal Ministry of Economic Cooperation and Development and the German Social Accident Insurance in Dresden arranged the meeting. Bangladesh State Minister for Labour M Mujibul Haque, German Parliamentary State Secretary Hans-Joachim Fuchtel, International Labour Organization’s (ILO) Deputy Director General for Field Operations and Partnerships Gilbert Houngbo, BGMEA President M Atiqul Islam, ILO Representatives and EU leaders, among others, spoke on the occasion. Speakers at the event expressed satisfaction over the progress Bangladesh has made so far, according to a message received here on Tuesday. Tofail said he strongly believes that Bangladesh will be on top of the sourcing countries in the coming years. “We know buyers are constantly looking for new opportunities for affordable capacity but those factors beyond labour cost, as example safety compliance and social and environmental impact, has raised importance.” Hans JoaehimFuchtel, Parliamentary State Secretary, the Federal Ministry of Economic Cooperation and Development (BMZ), Dr Joachim Breuer, Director General of German Social Insurance, high-level representatives of ILO, delegates from various countries and representatives of buyers and retailers, research institutions and academicians were present. The Commerce Minister said the progress made so far demonstrates a renewed approach in governing the affairs of the country’s RMG sector. “No such accidents have occurred after Rana Plaza accident. Yet, it remains a long-drawn and continuous process. The government, through various mechanisms, has been monitoring all the activities so that steps taken in this regard are completed in a well-coordinated manner,” he added. Tofail said it is truly utmost important for Bangladesh following the recent fire and building collapse. “Therefore, the government of Bangladesh has taken measures to address the issues. Tangible progresses are made in the meantime and Bangladesh is following the right tracks – the development partners, buyers, retailers, international labour unions and researchers are mentioning in their writings,” he added. All the plans encompass the assessment of fire, electrical and structural integrity of the active export oriented RMG factories in addition to legal and institutional reform, transparent and accountable inspections, setting up publicly accessible database, training and education etc, Tofail said. “We all are engaged in implementing all the issues and concerns therein,” he added. About 94 percent of the exports from Bangladesh to Germany are RMGs, and Bangladesh imports mainly comprising machinery, chemical and electrical goods, and medicines. Tofail said Bangladesh’s textile and apparel industry attracts the attention of scholars and policymakers all over the world because of its robust export performance over the last three decades and increasing contributions to the country’s poverty reduction and women employment. The RMG sector is now the world’s second largest exporter of RMG. This sector is country’s leading export earner accounting for U$ 25.5 billion along with 82 percent of Bangladesh’s total exports. Bangladesh has a plan to reach a US$ 50-billion export mark from the RMG and apparel industry by 2021. “We believe such robust performance has been possible due to the advantages Bangladesh has in terms of price and capacity as well as liberalisation of the RMG sector through phasing out of quota- and duty-free access provided by the major trading nations of the world,” the Commerce Minister added.
