BGMEA seeks German support for duty-free access in EU

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) seeking Germany’s government support to continue duty-free trade facilities in the European Union (EU) market after graduation from the Least Developed Country (LDC).

A delegation of BGMEA headed by President Faruque Hassan along with Ambassador of Bangladesh to Germany Md Mosharraf Hossain Bhuiyan, ndc paid a call on Dr Bärbel Kofler, Parliamentary State Secretary to the Federal Minister for Economic Cooperation and Development in Berlin on June 3.

They discussed possible scope ways of expanding Bangladesh’s trade with Germany and further deepening the relationship between the two countries, BGMEA said.

The EU is largest export destination to Bangladesh and currently enjoying duty-free market access on this region under the Generalized System of Preferences (GSP) facility thanks to LDCs country. But in 2026, Bangladesh will graduate from LDC and this facility will be expired on 2029.

Bangladesh would be eligible for GSP+ to get duty-free market access again, but the European Commission (EC) proposed some condition for get GSP+. If the EU parliament will pass this proposal, Bangladesh’s apparel sector will be no longer for GSP+.

However, the BGMEA expected that the EU will remove all barriers.

In a press release, the BGMEA said, during the meeting they recognised the need for more cooperation and collaboration between Germany and Bangladesh to unlock trade and investment potential.

They sought Germany’s support in the continuation of duty-benefit for Bangladesh in the European Union for 10 years after the graduation from LDC to faciliate smoother transition.

BGMEA President Faruque Hassan gave an overview of Bangladesh’s RMG industry including the current situation, opportunities, challenges and future priorities.

The RMG industry of Bangladesh is increasingly focusing on enhancing its capabilities particularly through technology upgradation, innovation and skills development, he said.

The industry is also laying more emphasis on apparel made from synthetic fibres to meet the rising demand in the global market, he added.