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US cautions Bangladesh of MFA deadline "overstepping" |
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2004-7-13
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Bangladeshi readymade garment exports would be blocked from entering the US market if the export volume exceeded the limit for 2004 under an agreement on textiles and clothing.
In a letter to the Ministry of Foreign Affairs, the US government urged Bangladesh to ensure that all RMG exports in 2004 ‘are consistent with the ATC and other textile agreements’.
The US pointed out that exports were to be accounted for by the date of export. Therefore all shipments of 2004 entering the US next year must also be within their quota limits of 2004.
“Shipments of 2004 in excess of agreed limits violate the terms of the ATC and other textile agreements and the United States is prepared to deny entry or to stage entry in 2005 to textile products exported in excess of 2004 annual quota limits if circumstances warrant it,” said the letter sent through the US Embassy in Dhaka on July 5.
The US embassy in Bangladesh was also conveyed the US decision regarding the visa arrangement pertaining to textiles and apparel trade that the US will terminate beginning next year.
“The United States will not require a visa, exemption certificate, Guaranteed Access Level (GAL) certification, or Electronic Visa (ELVIS) transmission for textile and apparel products exported from Bangladesh after that date,” the letter said.
The US, in conformity with the relevant agreements, administers annual quota limits on the basis the date of export and not the date of entry in US, the letter stressed.
Hence “all shipments in 2004, even those entering the United States in 2005, are subject to quota limits,” the letter added.
The USA conforms to the ATC that all textile and apparel products must be integrated into the General Agreement on Tariffs and Trade 1994 by January, the timeframe for phasing out the multi-fibre arrangement.
The United States is the second largest market for Bangladeshi readymade garments after the European Union; and Bangladesh is one of the top 10 apparel suppliers to the American market.
Earlier in 2002, Bangladeshi exporters exceeded quota limits and the US government responded with the penalty of reducing their quota the following year (2003), said office bearers of the Bangladesh Garments Manufacturers and Exporters Association.
Garments exports to US declined by 15 per cent to $1.19 billion during July-March of 2003-04 fiscal compared to $1.4 billion in the corresponding period of the previous fiscal. On the other hand, exports to the EU rose by 34 per cent to $2.2 billion from $1.66 billion during the respective periods.
Quota phase-out has been rolling in four phases, with the final round set to be effective from January 1, 2005.
The major portion of Bangladeshi garments exports belongs to categories, which are scheduled to lose quota restriction facility in the last round.
In fact, the top 10 categories, which cover about 58 per cent of total exports from Bangladesh, are yet to be phased out. |
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