BGMEA seeks fair prices from US buyers

Bangladesh Garment Manufacturers and Exporters Association urged the US apparel brands and retailers to be rational in fixing prices of garment products to build a secured global market where workplace and jobs will be safer and more sustainable.

BGMEA claimed that around 30 per cent working cost increased to ensure workers’ safety, sustainability and better wages compared to the last five years. On the other hand, prices of RMG products decrease continuously.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan made the call while addressing a roundtable titled ‘Seven years after Rana Plaza: Who is doing what?’ organised by the Bangladesh Embassy in Washington DC on Friday last.

“It’s a fact that in a free market economy, price cannot be dictated. But nobody can justify a lower price to produce socially fair goods,” he said.

Christopher Wilson, Assistant US Trade Representative for South Asia; William Jackson, Assistant USTR for Textiles, and Jennifer Larson, Director for South and Central Asia of the US Department of State, former Bangladeshi diplomat Farooq Sobhan, BGMEA Vice President Miran Ali, representatives of US-Bangladesh Business Council, American Apparel and Footwear Association, Walmart, Target, senior officials of the Bangladesh Embassy, among others, attended the roundtable.

The USA is the second largest apparel export destination of Bangladesh and as a single country; it is the top RMG market also. On the other hand, Bangladesh is the third largest apparel exporter to USA, while China is holding first position followed by Vietnam.

In the 2020-21 fiscal year, Bangladesh exported $5.95 billion apparel goods to the USA which is 18.90 per cent of the total apparel exports. At the same period, Bangladesh exported $31.46 billion apparel goods to the world market.

In 2018-19 fiscal, the country exported $6.13 billion apparel goods to the USA which was $5.14 billion in 2019-20 fiscal year.

“It is the collaboration and partnership between brands and our suppliers that has helped us to achieve tremendous growth so far and future cooperation and partnership will help us to maintain this,” Faruque Hassan added.

He briefed the US government and relevant stakeholders about how the readymade garment industry of Bangladesh has undergone massive transformation over the last few years to become one of the safest industries in the world and have the highest number of green garment factories across the globe.

Faruque Hassan also apprised the participants of the steps and measures taken by the industry to ensure workers’ wellbeing.

He urged the US government to consider reducing duty on apparel products from Bangladesh.