Call for global cooperation to tackle unfair purchasing practices in RMG industry

Enforcement authorities in key global markets should work closely with garment supplier countries to tackle unfair purchasing practices with effective measures such as joint inspections, data-sharing agreements and the establishment of international grievance mechanisms.

Khondker M Talha, Ambassador of Bangladesh to France and Permanent Delegate to UNESCO, made the remark at a virtual side session at the 2025 OECD Forum on 'Due Diligence in the Garment and Footwear sectors', on Monday.

"For instance, short-term planning, delayed payments, and last-minute order cancellations by buyers disproportionately affect suppliers and workers," he said.

He suggested that regulations in key markets must go beyond mere compliance and tackle the root causes of these issues.

He urged the regulators to mandate equitable cost-sharing mechanisms and enforce fair payment terms to ensure that the financial burden of compliance is not borne solely by suppliers.

The Bangladesh embassy in Paris organised the virtual session in collaboration with Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

The session, moderated by Olivia Windham Stewart, an independent business and human rights specialist, focused on aligning Bangladesh's RMG industry with the "Three Zeros" framework -- Zero Poverty, Zero Unemployment, and Zero Net Carbon Emissions -- proposed by Nobel Laureate Professor Muhammad Yunus.

This transformative framework aims to drive inclusive growth, environmental sustainability, and ethical practices in the garment sector, which contributes over 80 per cent of Bangladesh's total exports and employs more than 4 million workers, predominantly women.

While significant progress has been made, gaps and inconsistencies in current regulations remain a challenge, Mr Talha said. "For instance, the lack of harmonised global standards often leads to conflicting compliance requirements, increasing the burden on suppliers."

Furthermore, the absence of enforceable mechanisms to ensure fair pricing and payment terms undermines the sustainability of the supply chain, he added. To address these gaps, he recommended harmonised global regulations that mandate responsible purchasing practices and ensure shared accountability between buyers and suppliers.

Other suggestions included technical and financial support from international partners to help suppliers meet compliance requirements, particularly small and medium enterprises (SMEs) and enhanced data transparency to monitor purchasing practices and ensure that buyers adhere to fair pricing and payment terms.

Highlighting Bangladesh's remarkable progress in improving workplace safety since the Rana Plaza tragedy in 2013, Mr Talha emphasized the government's commitment to integrating the "Three Zeros" framework into national policies, including labour law reforms, green factory initiatives, and sustainable export strategies.

He also underscored the importance of fair pricing and ethical purchasing practices by global brands to ensure the sustainability of the RMG sector and urged the OECD and international partners to provide technical and financial assistance to support capacity building, data transparency, and worker empowerment programs to build a fair and inclusive global supply chain that upholds human rights, promotes sustainability, and ensures equitable benefits for all stakeholders.

BGMEA representative Miran Ali said, "We must ensure that the flow of business to Bangladesh does not come at the expense of our resources unless our workers receive a better deal and there is social justice. At the same time, social justice must align with responsible production. That is the balance we must strike."

"Locally, we need to set certain minimum standards for doing business," he said, adding that they would ensure that anyone who does business with Bangladesh upholds these standards.

Sharing insights from the perspective of global brands, Bismuth Sebastien, Chairman of Celio, France, said his company has been present in Bangladesh for more than 20 years, operating with a social and sourcing office that employs over 45 people.

He emphasised the importance of partnerships with suppliers in achieving sustainability goals and commended Bangladesh's efforts towards green manufacturing and labour rights reforms.

munni_fe@yahoo.com