The United States International Trade Commission (USITC) on Sunday met with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) officials, seeking the action plan of the Bangladesh apparel sector for due diligence, sustainability, and LDC graduation.
The purpose of the USITC visit is a fact-finding mission to gather statistical and qualitative information underlying the competitiveness of the apparel industries in Bangladesh, Cambodia, India, Indonesia, and Pakistan, all of which are current leading suppliers to the US market.
The USITC is investigating a sudden rise in per-unit import prices of garment items exported from the countries under investigation.
The USITC delegation included Erika Bethmann, international economist, and Mary Roop, international trade analyst, alongside Joseph Giblin, economic unit chief at the US Embassy in Dhaka.
BGMEA President SM Mannan Kochi led the apex body of Bangladesh’s apparel sector, where Vice Presidents Miran Ali and Abdullah Hil Rakib, along with directors Shovon Islam, Ashikur Rahman (Tuhin), Shams Mahmud, and M Ahsanul Hoq and Chair of BGMEA Standing Committee on Labour and ILO Affairs ANM Saifuddin also participated in the discussions.
Meeting insiders said that the USITC asked BGMEA about the competitiveness. They also inquired about the preparations for LDC graduation as Bangladesh will graduate from the list in 2026.
The delegation wanted to know about the progress in sustainable clothes manufacturing and due diligence as well.
During the meeting, BGMEA said that they are already working on preparations for LDC graduation, and Bangladesh’s apparel sector has made significant progress in sustainable clothes manufacturing.
The BGMEA leaders underscored the industry's commitments and advancements, particularly in environmental sustainability and workers' rights and welfare.
They highlighted Bangladesh's remarkable achievements, such as boasting the highest number of Leadership in Energy and Environmental Design (LEED) certified green garment factories globally and maintaining its position as one of the safest apparel exporting countries.
“We informed them Bangladesh is home to 208 LEED certified green apparel factories including the top nine out of ten, and another nearly 500 are waiting for certification. We are exporting clothes to the world with competitiveness and everything is fair,” Ashikur Rahman Tuhin, director of BGMEA told The Business Post.
Tuhin continued, “We said that our workplace environment is very good and our workers are able to express their freedom of speech without fear as dozens of trade unions are present in the apparel sector.”
On March 11, the USITC conducted an oral hearing, where representatives from the commerce ministry and BGMEA provided insights into the industry's competitiveness, and a written hearing was held on March 24.
At the May 5 meeting, Bangladesh's standing and competitiveness in the global apparel market were reiterated, as mentioned in a BGMEA press release.
Apparel exporters are optimistic that the USITC will not impose any penalty against them, as the sector is already navigating a challenging environment and tough global competition while following all international guidelines.
The local readymade garment (RMG) industry has also set an example in reducing the carbon footprint.
Industry insiders added that Bangladesh’s exports to the USA have increased despite the country’s reduced sourcing from the global market. This feat was achieved by comparatively lower labour costs, adoption of latest technology, reduction in utilities costs and low profit margins.
Last year, the country’s apparel sector's minimum wages were around $73 (Tk 8,000), and after the new wage hike implemented in December last year, the figure rose to $113 (Tk 12,500). The wage hike has increased RMG manufacturing costs by almost 30 per cent.
Amid such a situation, the government has gradually been reducing additional facilities such as Export Development Fund (EDF), cash incentives, while simultaneously increasing gas, electricity, water, and other costs.
The LDC graduation will put the country’s exporters who depend on the USA into a more difficult situation, as production costs will rise due to economic development, industry insiders said.
