Local RMG finds respite in US move to curb China import
Bangladeshi apparel exporters are closely monitoring the US administration’s steps to curb surging imports from China, which, they hope, would them give some respite to protect their market share.
Adopting of safeguard measures by the USA against Chinese apparel exports would be a `great relief’ for Bangladeshi apparel exporters, they said.
‘We are monitoring the proceedings of safeguard measures constantly,’ said Annisul Huq, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Such measures, if finalised, would give a breathing space to Bangladesh and some other apparel exporting countries, whose clothing industry and employment have been at stake due to a surge in Chinese exports in just three months into the expiry of textile quota, Huq said.
Industry sources said the US administration, pressed by domestic textile lobbies, last week decided to scrutinise imports from China in six categories- cotton knit shirts, cotton trousers, cotton and man-made fibre underwear to assess the impact on local industry. The National Council of Textile Organisation (NCTO), the US apparel industry association, also requested for similar investigations in 14 other categories.
According to WTO rules, quotas will be set at 7.5 per cent above the level of imports in the first 12 months of the most recent 14-month period.
If the Committee for the Implementation of Textile Agreements (CITA) under the US Trade Department completes investigations before the end of May, the 12-month period taken into consideration would begin from March 1, 2004 and end on February 28, 2005.
Quoting US market analysts, BGMEA officials said that depending on categories, Bangladesh, India, Sri Lanka and Central American countries could take advantage of the possible China safeguards.
Annisul Huq said that American lobbyists are working for smaller exporting countries like Bangladesh and Cambodia, and trying to convince the US administration that such safeguard measures would save textile industries and jobs of millions in poor countries.
American analysts feel that India and Bangladesh would be benefited in men’s and boys’ cotton and man-made fibre woven shirts categories.
In these categories, US imports from China rose 284 per cent in the first quarter while shipments from India and Bangladesh saw a moderate growth of 28 per cent.
US buyers consider two countries as low-cost specialists of woven shirts.
Bangladesh exported 1756527 dozens of woven shirts to the USA in January-March 2005 against 1370382 dozens in the same period of the previous year. Bangladesh controls about 13 per cent market share in this category.
Bangladesh, along with Indonesia and Cambodia, should draw maximum benefits in categories of cotton trousers, denim jeans or khakis, market analysts said.
In this category, US imports from China surged 1,521 per cent in the first quarter while imports from Bangladesh, Indonesia and Cambodia grew 76 per cent, 56 per cent and 36 per cent respectively.
Bangladesh exported 24,23,313 dozens of trousers in January-March of 2005 against 13,77,414 dozens in the same period of the previous year. In this category, Bangladesh enjoys 5.06 per cent market share in USA.
US trade department statistics showed that in January- February of 2005 Bangladesh exported $343 million worth of apparels to the US market with 9.17 per cent increase in volume and 13 per cent in value.
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