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The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has identified uncertainty over the country's LDC graduation process, along with India's new and proposed trade deals especially with the European Union and the United Kingdom, as key factors, among others, behind the recent decline in locally made garment exports.
Some buyers have started shifting a portion of their export orders to the neighbouring country from Bangladesh over the uncertainty and India's growing competitiveness, said the apparel apex body.
The observations were made at an emergency board meeting of the apparel apex body headed by its President Mahmud Hasan Khan at its headquarters in Uttara.
The emergency board meeting was convened to identify the factors of recent continuous fall in export earnings and their way forwards.
Talking to the FE after the meeting, BGMEA President Mahmud Hasan Khan said buyers are also increasing their sourcing from India due to its increasing competitiveness mostly because of its integrated supply chain, cost competitiveness and new and possible trade deals especially with the European Union and the United Kingdom, he noted.
"We have made budgetary demands, including raising cash incentive on exports, withdrawing tax on cash incentive, reducing cost of fund, measures to ensure smooth energy supply, and enhancing port efficiency, among others," he said, adding they are now waiting to see how much of their demands would be met in the upcoming budget.
They discussed the issues during the emergency board meeting, he said, adding that they will prepare a charter of policy support and give it to the government shortly.
Munni_fe@yahoo.com