Bangladesh is confident of agreeing a deal to get duty free market access for its exports to the United States during the World Trade Organisation (WTO) ministerial meeting in Geneva, business leaders said on Sunday.
"We are hopeful of getting green signal from the US government for duty free entry in its market, which is significant for us to boost economy and also to reduce poverty," said Anwarul Alam Chowdhury, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
On the eve of the three-day WTO meeting to be held from July 21, Anwarul told reporters that if the US government approved duty free access for Bangladesh its exports to America would rise at least by 30 percent.
"Now we have to pay 16.5 percent duty on average for our exports. If they waive the tariff, we will have more competitive strength as a least developed country (LDC)," Anwarul said.
The US is the single largest destination for Bangladeshi ready-made garments where for the last two years the export volume was nearly $3 billion, a third of total export earnings from the textiles sector. "It will also help us to focus on the well-being of our workforce of whom more than 80 percent are women," he said. Officials said that duty free access would also create nearly 200,000 new jobs, mainly for women.
Bangladesh has paid nearly $520 million annually in customs duty to the US government over the last couple of years, officials said.
Anwarul said at present about 12 million of Bangladesh's more than 140 million people were directly and indirectly engaged in the ready-made garments sector, which accounts for more than three fourths of Bangladesh's total exports.
The textiles sector in Sub-Saharan African countries had been growing at an average rate of 13 percent between 2001 and 2005, largely due to duty-free access to the United States, said a research official of BGMEA.
"Despite it is the election year in the U.S, a law for duty free access for LDCs including Bangladesh may be enacted, and it is more likely to take effect from next year," the BGMEA President said.