Fifteen poor states seek US garment preferences
A coalition of 15 of the world's poorest developing countries is
lobbying the US Congress for a new scheme that would give them trade
preferences to offset the advantages gained by China and India since the
lifting of quotas on textiles and apparel.
The countries which include Bangladesh, Afghanistan, Cambodia and
Nepal say they are facing a severe disadvantage selling into the US
market, not only against larger competitors but against smaller African
and Latin American nations that enjoy duty-free access for many garment
exports. Fourteen of the 15 countries are considered "least developed"
by the United Nations, while the other, Sri Lanka, was badly hurt by
last December's tsunami.
"We don't have the resources to compete with the big players around
us," said Muhammad Yunus, founder of Bangladesh's Grameen Bank, during a
visit to Washington last week to push for the legislation. He said if
the current situation were left unchanged, Bangladesh could find itself
losing an industry that the World Bank estimates has pulled nearly 2m
families about 13 per cent of the country's poor households out of
poverty. "What will we do with the 1.5m young girls who work in the
garment industry?" he said. "If that industry gets threatened, then our
society gets threatened."
The effort to pass a new trade preferences bill, which enjoys some
bipartisan support in both houses of Congress and backing from
multinational companies such as Nike, nonetheless faces difficult
political hurdles.
The US has offered new preference programmes to Africa and the
Caribbean over the past decade, but each of those bills took several
years to build sufficient congressional support to overcome opposition
from domestic textile interests.
Bangladesh and the other countries pressing for the new bill fear
they do not have that much time. Annisul Huq, of the Bangladesh Garment
Manufacturers and Exporters Association, said the industry there had not
yet been seriously hurt by the end of quotas because many buyers were
reluctant to shift too much sourcing to China due to fears the US and
Europe would reimpose quotas.
"But in the longer run we are pretty sure that, unless we get a level
playing field, this industry will be seriously hurt," he said. Clothing
accounts for about 80 per cent of Bangladesh's exports, with 40 per cent
of that going to the US.
Many of its apparel products already enjoy duty-free access in the
European Union as part of the 2001 Everything But Arms Initiative,
leading to a 19 per cent rise in exports since 2001 that has made it the
fourth largest garment exporter to Europe. Bangladesh's garment exports
to the US fell 6 per cent in the same period.
Critics say the expansion of preference programmes has done little to
help developing countries, with each new scheme eroding the preferences
of poor countries that already enjoy them and further hurting those
countries without such benefits.
(Financial Times - Washington) |