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US retailers to lobby for trade privileges for Bangladesh

Big brands in the US are committed to staying in Bangladesh, says Nate Herman of American Apparel and Footwear Association


The American Apparel and Footwear Association (AAFA) will urge the Obama administration to reinstate trade benefits for Bangladesh, as the country is an important sourcing destination for American customers.

“We will try to propose USTR [United States Trade Representative] to withdraw the GSP suspension on Bangladesh next year, if the GSP scheme is renewed again,” Nate Herman, vice president (international trade) of AAFA, told The Daily Star in an interview in Dhaka on Monday.

AAFA is the highest trade body for apparel and footwear traders in the US, representing more than 1,000 retailers and brands in the $361 billion US retail sales market.

Herman was in Dhaka to attend the Apparel Summit, which was organised by Bangladesh Garment Manufacturers and Exporters Association, as a discussant.

“Once GSP is revived for Bangladesh, we will try to include leather goods, backpacks, luggage, wallets and smartphone covers that originate here,” he said. “This will be our first step next year so that Bangladesh is benefited.”

AAFA tried to include Bangladesh's garment items in the generalised system of preferences (GSP) scheme for the last five years, but failed, he said.

The trade privilege has remained suspended for all beneficial countries since July 31 last year. After the Rana Plaza building collapse, the USTR, the chief trade negotiation body for the US, suspended the scheme for Bangladesh, citing serious shortcomings in labour rights and workplace safety in June last year.

Since suspension, Bangladesh has been lobbying the US government to reinstate the trade benefit by improving workplace safety and labour rights, following the 16-point action plan provided by the Obama administration.

“Garment items from no country enjoy the GSP privilege. So, Bangladesh is no exception,” Herman said.

Since Bangladesh does not enjoy a zero-duty benefit on exports of apparel, it needs to pay a 15.61 percent duty -- one of the highest rates on the export of garment items to the US market.

First enacted in 1974, GSP eliminates import duties for American firms on certain products from nearly 130 developing countries. American companies have been losing $2 million a day -- over $850 million so far -- since the benefit was suspended last year.

Before suspension of the scheme, Bangladesh used to export 0.54 percent of total exports to the US, or around $26 million a year, under the trade privilege. Continuation of the scheme is important for the country's image.

Herman also agreed that the 15.61 percent duty is high compared to other competing countries in the US market. The trade relationship between the two countries is stable and exports from Bangladesh to the US are expected to grow, although there was a slight fall in apparel exports in recent months, he added.

“The US retailers are following a wait and see policy on purchasing goods from Bangladesh as the action plan is still being implemented here,” Herman said.

“The US retailers are still observing progress on implementation of the action plan. This is the main reason for the slight fall in recent exports.”

He said the bigger US buyers are strongly committed to staying in Bangladesh.

The US is the single largest garment export destination for Bangladesh: 23 percent of garments worth $5.5 billion reach American markets a year.

“I think the situation is improving. Everything is going in the right direction in Bangladesh. But the progress should be sustainable so that disasters do not occur again.”

He said the Bangladesh government should continue workplace safety activities even after the departure of the Accord and Alliance, who will leave by the end of 2018, so that no-one can question the safety and security issues of the workers.

On the target to export apparel worth $50 billion by the end of 2021, Herman said: “I think the target is achievable. It depends on the sustainability of the progress made in the sector in the last two years under the action plan.”

After the Rana Plaza tragedy, a section of customers in the US reacted to worker safety issues in Bangladesh. “But now, people are coming back to purchase more Bangladeshi items.”

Herman said the prices of Bangladeshi garment items exported to the US increased by 20 percent in the last four years, although the price level was stagnant for the decade leading to 2010.

He said garment exports from Bangladesh to the US will continue to grow, but it is hard to predict how much it will grow in the next 10 years, as so many US buyers are sourcing from here.

“I cannot really predict how much exports will grow. People in the US have been looking to get out of China. China's apparel market share in the US is declining and Vietnam's share is growing,” he said.

Herman made three suggestions to take exports forward: continued progress in reform efforts, improving productivity and ensuring workplace safety.
 
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Unlike many of our neighbouring countries...we are proud to say we can provide service to the nation by different brand of buses starting from HINO,MITSUBISHI,ISUZU,SCANIA,VOLVO,MERCEDES BENZ,MAN,HYUNDAI,DAEWOO ETC
Whereas earlier could say few but now nothing is left to come in the country..Hino entry in 1980's..volvo entry in 2002...scania entry in 2004-2005..Man entry 2005-2006 ...mercedes entry 2007-2008...Hyundai entry 2010.
It would be helpful if any of you guys can post some pictures of bus scenario in pakistan :)
 

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Unlike many of our neighbouring countries...we are proud to say we can provide service to the nation by different brand of buses starting from HINO,MITSUBISHI,ISUZU,SCANIA,VOLVO,MERCEDES BENZ,MAN,HYUNDAI,DAEWOO ETC
Whereas earlier could say few but now nothing is left to come in the country..Hino entry in 1980's..volvo entry in 2002...scania entry in 2004-2005..Man entry 2005-2006 ...mercedes entry 2007-2008...Hyundai entry 2010.
It would be helpful if any of you guys can post some pictures of bus scenario in pakistan :)

.Volvo scania etc gets manufactured in India and is then exported to BD.We have ISUZU,SCANIA,VOLVO,MERCEDES BENZ,MAN,TATA HISPANO,ASHOK LEYLAND COACHES
 
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Unlike many of our neighbouring countries...we are proud to say we can provide service to the nation by different brand of buses starting from HINO,MITSUBISHI,ISUZU,SCANIA,VOLVO,MERCEDES BENZ,MAN,HYUNDAI,DAEWOO ETC
Whereas earlier could say few but now nothing is left to come in the country..Hino entry in 1980's..volvo entry in 2002...scania entry in 2004-2005..Man entry 2005-2006 ...mercedes entry 2007-2008...Hyundai entry 2010.
It would be helpful if any of you guys can post some pictures of bus scenario in pakistan :)

Hope you can keep the lead alaways.
 
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World’s 5th largest data centre to be in Bangladesh

The government is taking steps to build a hi-tech national data centre to speed up information flow, a junior minister has said.


State Minister for Information and Communication Technology (ICT) Zunaid Ahmed Palak announced the plan at a press conference in Dhaka on Monday.

He said the centre, equipped with cloud computing and G-Cloud technologies, would be the world’s fifth largest data centre.

The press conference on ‘A year of advancement towards building a digital Bangladesh’ was held at the Bangladesh Computer Council building.

The junior minister said: “The signing of a commercial agreement with the Chinese government to build this tier-4 certified centre is in the final stages. We hope to start the construction the project infrastructure this year.”

He said around 20 acres would be needed for the facility. “It can be situated in the High Tech Park being built at Kaliakoir (in Gazipur).”

He, however, gave no details of the extent of benefit the centre would provide.

Palak highlighted the government’s various initiatives to boost the information technology sector.

Bangladesh would get its first satellite, ‘Bangabandhu’, in 2017, he said, adding the country had procured a ‘very good’ orbital slot from Russia.

“We signed an agreement last week. We hope to send our satellite to space in 2017,” he said.

The government signed a $28 million agreement with Russia’s Intersputnik International Organisation of Space Communication to lease the orbital slot.

The satellite will be positioned in the 119.1 east longitude slot.

The Executive Committee of the National Economic Council (ECNEC) had approved the project, having an outlay of Tk 29.68 billion, on September 16 last year.

A US firm, Partnership International, is the project’s design and launch consultant.

The junior minister said a ‘national call centre’ was being developed to give people prompt information about civic services.
 
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.Volvo scania etc gets manufactured in India and is then exported to BD.We have ISUZU,SCANIA,VOLVO,MERCEDES BENZ,MAN,TATA HISPANO,ASHOK LEYLAND COACHES
Volvo comes from India...Scania,Man & Mercedes benz comes from Malaysia...Hyundai & Daewoo comes from Korea...From a while ago Hino engines are being purchased and then putting on into deshi bodies by varies body makers even the same thing's happening with Isuzu both ac and non-ac Many big banners are doing re-bodies to shape the body like new..recently a company got the delearship of scania thus it will start producing buses with scania engie on deshi made bodies look below some deshi made bodies

Volvo comes from India...Scania,Man & Mercedes benz comes from Malaysia...Hyundai & Daewoo comes from Korea...From a while ago Hino engines are being purchased and then putting on into deshi bodies by varies body makers even the same thing's happening with Isuzu both ac and non-ac Many big banners are doing re-bodies to shape the body like new..recently a company got the delearship of scania thus it will start producing buses with scania engie on deshi made bodies look below some deshi made bodies
2.jpg Deshi made scania body made my Shohagh Motors

Volvo comes from India...Scania,Man & Mercedes benz comes from Malaysia...Hyundai & Daewoo comes from Korea...From a while ago Hino engines are being purchased and then putting on into deshi bodies by varies body makers even the same thing's happening with Isuzu both ac and non-ac Many big banners are doing re-bodies to shape the body like new..recently a company got the delearship of scania thus it will start producing buses with scania engie on deshi made bodies look below some deshi made bodies


2.jpg Deshi made scania body made my Shohagh Motors
542306_2981785038217_706724431_n.jpg Deshi made Hino body made by Aftab Automobiles 10850261_755243551213080_518409141902468233_n.jpg Scania body by Greenline
 
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Unlike many of our neighbouring countries...we are proud to say we can provide service to the nation by different brand of buses starting from HINO,MITSUBISHI,ISUZU,SCANIA,VOLVO,MERCEDES BENZ,MAN,HYUNDAI,DAEWOO ETC
Whereas earlier could say few but now nothing is left to come in the country..Hino entry in 1980's..volvo entry in 2002...scania entry in 2004-2005..Man entry 2005-2006 ...mercedes entry 2007-2008...Hyundai entry 2010.
It would be helpful if any of you guys can post some pictures of bus scenario in pakistan

:D we also operated that kinds of bus since 2008... dude..:)

Mate.. Plz Could u post any kind of Luxury high end car and exotic car run on BD's road..? @Shimz @BDforever
 
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Brother it's obvious to see the development as our indenpence in different time and we had different money for the country and also the area of our countries are totally different so how come one can compare? Dude if you're a pakistani then i would say plz bro show me some pictures of the stated brands of buses because i have hardly seen that type of buses over their...Just daweoo and hino in large number as far as i know in your country If you are an Indian then show me some pictures of daewoo hyundai hino...and don't put an example like which exist in few number in the country come with the majority cause as far as i know india is full of volvo benz scania tata al etc nothing out of it and the interior of those buses are like very poor with hard seats and less leg space..dont say like check out our new scania coaches cause i have gone through it n nothing specially inside....Bro lets not drag it far t avoid the car segment ok let me just give you a hint...in bangladesh anything over 4000 cc you got to pay 800% tax ok A BMW M5 cost 3Cr taka in BD so after conver... in Indian rs its 23900000 and in pakistani rs its 39000000 so tell me how many m5 you can buy in that price in your country...earlier there were many imports like porsche ferrari bmw jagure hummer etc but after 2008 the tax started to rise up n now the import number decreased still imports are taking place like r8 f430 gtr camaro mustange but in very low rate :) :) :)
 
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Brother it's obvious to see the development as our indenpence in different time and we had different money for the country and also the area of our countries are totally different so how come one can compare? Dude if you're a pakistani then i would say plz bro show me some pictures of the stated brands of buses because i have hardly seen that type of buses over their...Just daweoo and hino in large number as far as i know in your country If you are an Indian then show me some pictures of daewoo hyundai hino...and don't put an example like which exist in few number in the country come with the majority cause as far as i know india is full of volvo benz scania tata al etc nothing out of it and the interior of those buses are like very poor with hard seats and less leg space..dont say like check out our new scania coaches cause i have gone through it n nothing specially inside....Bro lets not drag it far t avoid the car segment ok let me just give you a hint...in bangladesh anything over 4000 cc you got to pay 800% tax ok A BMW M5 cost 3Cr taka in BD so after conver... in Indian rs its 23900000 and in pakistani rs its 39000000 so tell me how many m5 you can buy in that price in your country...earlier there were many imports like porsche ferrari bmw jagure hummer etc but after 2008 the tax started to rise up n now the import number decreased still imports are taking place like r8 f430 gtr camaro mustange but in very low rate :) :) :)

Why so high..?
That's I found some BD Luxury and exotic cars... Xooo cooool ..!! Dude..

ImageUploadedByDefence.pk1423992399.076196.jpg

ImageUploadedByDefence.pk1423992478.453986.jpg

ImageUploadedByDefence.pk1423992507.519649.jpg

ImageUploadedByDefence.pk1423992431.327988.jpg

ImageUploadedByDefence.pk1423992351.250865.jpg


ImageUploadedByDefence.pk1423992555.827369.jpg


BTW what's 3Cr..? If exchange in US$, how much it cost..?
 
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You mean the car price? Yes gov wants that minimum numbers of vehicles run in Dhaka.
Dhaka traffic jam is nightmare. So high tax on importing vehicles.

Yeah.. i means car price.. good to see BD exotic cars... eevn though the price is so high , they can import the Farrari , Posche... etc Any updated cars photos of BD.? Bd has other exotic like Lamborghini or Buggati ..?
 
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