European Union ambassador Pierre Mayaudon said Bangladesh would have to meet four conditions to get GSP+ trade facilities after graduation to the middle income country status. The conditions include ensuring human and labour rights and maintaining environmental and good governance principles. Pierre Mayaudon was speaking at a seminar styled as “Bangladesh-EU Trade Ties: Prospects and Challenges” in Dhaka yesterday. The Economic Reporters Forum (ERF) organised the event at the National Press Club. The per capita income of Bangladesh is now $1,314, according the latest official data. To achieve middle-income country status as defined by the United Nations, Bangladesh must continue a per capita income above $1,398 for four consecutive years. Replying to a question the envoy said the EU will provide support including research and development, technology and academic assistance to explore the country’s emerging blue economy. He said the vision of Digital Bangladesh and proper exploration of blue economy will help Bangladesh achieve middle-income status. The GSP+ scheme provides a strong incentive to respect core human and labour rights, the environment and good governance principles. The scheme is part of the revised GSP scheme that entered into force on 1 January 2014. ERF president Sultan Mahmud moderated the programme, where secretary Sajjadur Rahman, among others was also present. “EU ambition in economic relation is to establish broader economic partnership between Bangladesh and the European countries,” Pierre Mayaudon said. The envoy added the EU had identified three main objectives including implementation of the sustainability compact, improving business climate and accompanying Bangladesh in climbing value chain. He urged the government to implement the labour rules not only in the RMG sector but also in other 42 sectors. As per the Vision 2021, Bangladesh will reach status of the middle income status. After reaching that status, the country will no longer benefit from the GSP facility, which is only for the least developed countries (LDCs). To prepare for the candidacy of GSP+ facility, Bangladesh will have to implement 27 international conventions on the subjects like human rights, labour rights, environment and good governance, Mayaudon said. As a LDC, Bangladesh is now enjoying duty-free and quota-free market access to the EU market under the GSP regime. The ambassador suggested reforms to the Companies Act integrating the service sector. He stressed the need to have transparent and credible regulatory framework to secure investment. Mayaudon said they would meet Commerce Minister Tofail Ahmed to tell him about what they can do for the reforms of the Companies Act. The envoy laid emphasis on peaceful environment to attract investment. “Some disturbing news make investors worried, which is keeping potential investments away from Bangladesh.” Mayaudon added: “70% of the court cases in Bangladesh are related to land disputes, which sends discouraging signal to foreign investors.” In a globalised economy, Bangladesh has to compete with many attractive destinations for foreign direct investments, he said. “Designing and conducting economic reforms is an absolute necessity, but it is vary difficult for the country to reform an economy.” Bangladesh has many assets to bravely carry out the process, the ambassador said.

Source: https://www.dhakatribune.com/business/2015/may/28/eu-envoy-urges-bangladesh-prepare-gsp#sthash.qbnrGDev.dpuf

The country’s trade gap with India in the first nine months of the current financial year continued to hover at $4.06 billion despite a slight increase in exports to the neighbouring country. The trade gap was still high as different non-tariff barriers continued to limit Bangladesh’s exports to the neighbouring country, said economists and experts. Bangladesh’s imports from India stood at $4.45 billion in July-March of the FY 2014-2015 whereas exports stood at $396.43 million during the period. The trade gap in July-March in the FY14 was $4.17 billion with an export figure of $284.49 million and import of $4.45 billion. A BB official told New Age on Sunday that the trade gap with India decreased in the first nine months of the FY15 as the country’s export earnings from the neighbouring country slightly increased while import remained static. ‘The businesspeople has recently adopted a “wait and see” approach to their business expansion by opening letters of credit for import due to political unrest. For this reason, the imports from India remained static in the first three quarters of the FY15,’ he said. He said that the increased export to India in the first nine months of the FY15 was not satisfactory as Bangladesh posted a paltry export figure of $396.43 million in July-March period of the FY15. The export figure was $284.49 million during the same period of the FY14. Policy Research Institute of Bangladesh executive director Ahsan H Mansur told New Age on Sunday that the country had been facing a large trade gap with China and India for a long time due to lower export earnings against higher import payments. The government should give pressure to India on political ground so that the country’s businesspeople would be able to increase their export items, he said. Mansur said the commerce ministry should take initiative to avoid non-tariff barriers with India that would help the exporters to increase their items to the neighbouring country. The government also should take initiative to strengthen Bangladesh Standards and Testing Institution so that the organisation will be able to conduct proper testing of the export products, he said. The foreign countries will get more confidence to import products from Bangladesh if the products will be tested accurately, Mansur said. Former finance adviser to interim government AB Mirza Azizul Islam told New Age earlier that the trade deficit of Bangladesh against India was still high as different non-tariff barriers continued to limit Bangladesh’s exports to the neighbouring country. The businesspeople have long been raising their concern in this connection but the India’s government is yet to mitigate the problem, he said. Mirza Aziz said the Bangladesh government should take step to continue discussion with New Delhi with a view to removing the non-tariff barrier. Besides, the country’s industrial sector has also facing a production crisis due to the recent political unrest and that might have played a role in the large trade deficit between the two countries, he said. ‘It is a natural phenomenon that Bangladesh usually faces a deficit with the neighbouring country considering the volume of India’s economy. But, the size of the deficit it has been maintaining for years is not acceptable,’ Aziz said.

Source: https://newagebd.net/123755/trade-gap-with-india-hovers-at-4b-in-july-march/#sthash.OAFE49gR.dpuf

Employers have teamed up with the International Labour Organization (ILO) to enhance occupational health and safety in the country’s largest foreign currency-earning garment sector. The Bangladesh Employers’ Federation (BEF) and ILO Wednesday signed an agreement marking the beginning of the second phase of a two-year plan supported by ILO’s Improving Working Conditions in the RMG sector project funded by Canada, the Netherlands and the UK. Under the project, some 750,000 to 800,000 workers would gain practical skills on how to reduce workplace accidents. Speaking at the signing ceremony, ILO Bangladesh Country Director Srinivas Reddy said, “It is vital that a culture of occupational health and safety (OHS) is developed throughout the Bangladesh RMG sector. By working closely with the Bangladesh Employers Federation, we will be able to build capacity at all levels that will benefit workers and employers alike.” “As employers, we are working closely with our partners to make workplace safety the number one priority,” Tapan Chowdhury, president of BEF said. OSH is everyone’s responsibility and through the joint efforts, a large number of managers, supervisors and workers will gain a good understanding about safety issues, which affect them and what they can do to keep both themselves and their workmates safe, he added. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Md Atiqul Islam and its vice president Reaz-Bin Mahmood and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) vice president Monsoor Ahmed were, among others, present. The first phase of the ILO-BEF collaboration saw the formation of a team of 114 master OHS trainers. During the second phase, the master trainers will head to 400 RMG factories and train 7,500 to 8,000 mid-level and line supervisors, who in turn will pass on OHS knowledge to 750,000 to 800,000 workers. By doing so, they will help create a culture of workplace safety and implement practical measures to reduce the risk of accidents. Master trainers have been selected by the BEF, BGMEA and BKMEA and include their own staff as well as officers from private sector companies in the RMG sector. The initiative is also backed by the International Training Centre (ITC) of the ILO, which has helped build the capacity of master trainers to deliver the courses which use the ITC-ILO Essentials of Occupational Safety and Health (EOSH) package. The complete EOSH course in which the master trainers have been trained comprises 25 subject areas. As training is cascaded down to the factory floor, emphasis is placed on a smaller number of areas best reflecting local needs. These include fire and electrical safety, dangerous substances, personal protective equipment, good housekeeping and primary health.

Source: https://www.thefinancialexpress-bd.com/2015/05/28/94399

In the face of rising demand from exporters, the central bank yesterday increased the size of its export development fund by 33 percent to $2 billion.The size of the fund was last raised in June last year — to $1.5 billion. Exporters get foreign currency loans from the fund at almost one-third the rates commercial banks charge.Kazi Sayedur Rahman, general manager of Bangladesh Bank’s foreign exchange reserve and treasury management department, said a hike in demand and adequate reserves of foreign currency have prompted them to increase the size of the fund.The revolving fund was introduced at just $100 million in 2006. Its size rose to the present level from only $200 million five years ago, riding on demand and swelling foreign exchange reserves, now nearly $24 billion.The interest rate for loans from the fund is 2.5 percent plus LIBOR (London Interbank Offered Rate). Businesses from various sectors, including garments, can take loans worth $1 million to $15 million for a maximum of 180 days.lso, by a notice yesterday, the BB raised exporter’s retention quota (ERQ). The central bank allowed exporters to retain specified parts of their export earnings in foreign exchange, for utilisation without prior approval from the BB for bonafide business expenses abroad, including maintenance of offices abroad, import of raw materials, machineries and spares.The ERQ for exports of high domestic value-added merchandise was raised to 60 percent from 50 percent now.The quota for merchandise exports of high import contents (like apparels using woven fabric) rose to 15 percent from existing 10 percent, according to the notice.The ERQ for export of services increased to 60 percent from existing 50 percent of repatriated export receipts.

Source: https://www.thedailystar.net/business/export/export-fund-raised-2b-88372

Wig and human hair have turned out to be important export items of Uttara EPZ in Nilphamari district. Sources said, the export of the items is increasing year on year. One Chinese co. YCL Ind BD Ltd and another Hong Kong based Co. Ever Green Product Factory BD Ltd are producing the exportable wigs. More than 2000 workers have been employed in these two factories and almost all of them are local youths comprising both male and female. While contacted one officer of Ever Green Product Factory BD Ltd said, his factory’s export is gradually increasing due to its large demand in the international market.

Source: https://www.thefinancialexpress-bd.com/2015/05/27/94242

The government has decided to adopt an action plan for ensuring health and occupational safety in five industrial sectors including readymade garments (RMG) and leather, sources said. The decision was taken Tuesday at the first meeting of a committee that was formed by ‘National Industrial Health and Safety Council’ in March. “Initially, we have prioritised five sectors garment and textiles, leather, shrimp, ship building and breaking and chemical considering the size of sectors,” Syed Ahmed, head of the committee and also Inspector General of the Department of Inspection for Factories and Establishments (DIFE), told the FE after the meeting. Gradually, other sectors would be included in the plan, he mentioned. The 13-member committee was formed to set common standards to ensure occupational health and safety for all the industrial sectors of the country. The committee again formed two working groups comprising representatives from workers, owners, the government and experts to devise strategy for implementing the National Occupational Health and Safety Policy 2013, meeting sources said. Later, a set of common standards that would be applicable to both formal and informal sectors would be framed mainly to ensure occupational and health safety, they explained. The groups will exchange views with all the stakeholders, they added. Earlier, the ministry of labour framed the policy aiming to speed up pace of industrialisation, ensure workers’ safety and compliance with other standards, apart from retaining competitiveness, especially in the wake of frequent disasters in the country’s top foreign exchange-earning garment sector, officials said.

Source: https://www.thefinancialexpress-bd.com/2015/05/27/94272

Strongly opposing the government’s move to raise source tax on readymade garment (RMG) export proceeds, leaders of the country’s leading trade bodies Tuesday demanded imposition of a uniform source tax for all export sectors. The businesses at the business advisory council meeting also suggested that the government should ensure smooth supply of natural gas and power and facilitate other infrastructure support for helping enhance competitiveness of local industries in the global market. International Chamber of Commerce, Bangladesh (ICCB) President Mahbubur Rahman, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Kazi Akram Uddin Ahmed, Metropolitan Chamber of Commerce and Industry (MCCI) President Syed Nasim Manzur, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Md Atiqul Islam and its former President Shafiul Islam Mohiuddin, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President AKM Salim Osman and Dhaka Chamber of Commerce and Industry (DCCI) President Hossain Khaled were, among other business leaders, present at the meeting, held at the Export Promotion Bureau office in the city with commerce minister Tofail Ahmed in the chair. About the government’s move to raise the source tax on apparel export earnings, the BGMEA leaders said if the source tax rate is increased it would create an adverse impact on the country’s apparel sector. They also told the meeting that the local apparel sector had already faced adverse situation as its export receipts sustained a slow growth over the months following political turmoil and impact of other external factors. Considering the situation, they demanded of the government to keep the existing rate (0.30 per cent) of source tax unchanged for the apparel sector. The business leaders raised the issue of source tax before the meeting against the backdrop of disclosure by the finance minister on different occasions that the government has a plan to hike the existing source tax on apparel export earnings in the upcoming budget. The leaders of the BKMEA, on the other hand, also pleaded for rationalising the supplementary duties and make the time- bound policy on tax and value-added tax (VAT). Mentioning that the exporters have to face some problems in getting the government’s export incentive subsidy, they suggested scrapping of the existing audit system for payment of such benefit. Leaders of other export sectors, however, also demanded that the rate of source tax should be the same for all as some other sectors are paying higher rate of 0.60 per cent. They also suggested the government to take timely measures to help flourish and sustain small and medium industries. They also called for allowing local businesses to invest outside the country. Frozen food exporters demanded a separate allocation of Tk 4.60 billion in the next budget for helping the sector face some challenges they are facing. The minister, however, assured that the government would look into their issues. A sub-committee was formed to make recommendations in line with their demands.

Source: https://www.thefinancialexpress-bd.com/2015/05/27/94270

Bangladesh Bank will take all possible measures to liberalise country’s foreign-exchange rules and regulations for attracting foreign investors to a number of proposed economic zones. The decision was taken at a meeting between the central bank and the Bangladesh Economic Zones Authority (BEZA) at the BB headquarters Tuesday. Presided over by BB executive director Md. Ahsan Ullah, the meeting was attended, among others, by BEZA secretary Muhammad Abdus Samad, its general manager Hariprasad Paul, development consultant AKM Mahbubur Rahman and senior officials of respective departments of the central bank. The meeting discussed investment-promotion measures like exchange of foreign currency for the industries to be set up in the economic zones, procedure of receiving loan in foreign currency, establishment of offshore banking units and repatriation of royalties and technical fees. Stress was placed on framing newer foreign-exchange rules and regulations and simplifying the existing ones. “The government has already approved proposal for setting up 22 economic zones in order to attract foreign investment and create large-scale employments in the country,” said a news release. Major economic powerhouses of Asia like China, India, Japan and Korea are coming up to invest in the planned economic zones.

Source: https://www.thefinancialexpress-bd.com/2015/05/27/94306

The government is likely to award two special economic zones (SEZ) to Indian investors-one at Mongla in Bagerhat and the other at Bheramara in Kushtia. The Mongla SEZ would be set up on about 205 acres of land and the other in Kushtia on 477.16 acres. A Memorandum of Understanding (MoU) is likely to be signed between the governments of Bangladesh and India during the upcoming visit of Indian premier Narendra Modi who arrives here on June 6 next on a two-day visit. Following an official letter of the Indian High Commission last week, the foreign ministry requested the Bangladesh Economic Zones Authority (BEZA) to move ahead with the matter. “We have prepared a draft MoU which has been sent for approval of the government high-ups,” said BEZA executive chairman Paban Chowdhury. The BEZA has sent the draft to the ministry for consent of the Indian counterpart, he added. Earlier, a feasibility study had been conducted to find out the economic potentiality of the Indian investment. Sources said India chose the locations for investment. Also, a train line would be constructed under the Indian LOC (line of credit) in the Mongla area. India, under its credit line, will assist Bangladesh to construct a new rail-line between Khulna and Mongla to connect the country’s second seaport with a railway network. In connection with the assistance, the Bangladesh Railway (BR) already signed a joint venture consultancy service contract with the Consulting Engineers Group Ltd and Nippon Koei India Private Ltd of India. BEZA officials said the economic zones would be awarded if both the party agree on the relevant terms and conditions. The government in February last approved proposals for setting up 17 economic zones in the country, including three private zones-one in Narsingdi and two in Munshiganj. The government has also approved special incentive packages for local and foreign investors to attract their investment in economic zones. The government enacted the private economic zone law in 2010 aiming to materialise the Vission-2021 by expediting economic growth and alleviating poverty.

Source: https://www.thefinancialexpress-bd.com/2015/05/27/94297

We buy too many clothes, and we pay too little for them. That’s the message of “The True Cost,” a new documentary on the perils of the fashion industry, which is being released next week. The film is a sweeping, heartbreaking and damning survey of the clothing economy. It covers malformed children of pesticide sprayers in India’s cotton belt, gruesome shots of the deadly 2013 Rana Plaza factory collapse in Bangladesh, Indian rivers frothing with chemicals, and mountains of discarded clothing in Haiti. “I believe these clothes are produced by our blood,” Shima Akhter, a Bangladeshi factory worker, says in the film. “I want the [factory owners] to be aware and look out for us, so that no more mothers lose their kids like that.” The film interviews a factory owner in Bangladesh, who says the constant pressure to produce cheaply is partly responsible for the unsafe conditions. “Is it really ethical to buy a T-shirt for $5, or a pair of jeans for $20?” asks Livia Firth, creative director at the sustainable businesses consultancy Eco-Age. Related: Out of a tragedy, socially responsible fashion The movie is filled with disturbing facts. Here’s a few: – 250,000 Indian cotton farmers have killed themselves in the last 15 years, partly as a result of going into debt to buy genetically modified cotton seeds. – There are 80 billion pieces of clothing purchased worldwide each year, up 400% from two decades ago. – American’s throw out 82 pounds of textiles annually. -Only 10% of the clothes people donate to thrift stores get sold — the rest end up in landfills or flood markets in developing countries. “I came into this completely blind,” director Andrew Morgan said at a press screening Friday. “I never thought twice about a piece of clothing I wore.” Morgan said a photo of children — who were close in age to his own kids — hunting for loved ones near the Rana Plaza rubble is what spurred him to make the film. He said systematic changes are needed in this and other industries, chief among them counting the costs of pollution or unsafe working conditions that are not currently factored into the price of goods. But for now, he urges consumers to opt off the treadmill of purchasing more and more cheap clothing — what’s being referred to as “fast fashion” — and buy fewer, better-made items. “Let’s back off this endless, constant purchasing and invest in clothes we love,” he said.

Source: https://www.observerbd.com/2015/05/26/90802.php