Kazi Zahidul Hasan :
Imposition of non-tariff and regional tariff barriers by India has continued to obstruct Bangladesh’s apparel export to the neighbouring country, exporters said.
They said although the Indian government has provided duty-free access to local apparels into Indian market since November 2012, local exporters are yet to take its full advantage due to such barriers.
“Bangladesh’s apparel exports to India is facing setback due to non-tariff and para-tariff barriers,” M Shahidullah Azim, Vice-President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told The New Nation on Wednesday.
According to him, harsh testing requirements, complex harmonised code classifications, inadequate infrastructure, and special labelling requirements are among major non-tariff barriers that Indian authorities have imposed on Bangladeshi exports.
“The 40 billion plus Indian apparel market is a highly potential market for Bangladeshi exporters because of geographical closeness and cultural adjacency,” he said, adding, “Bangladesh enjoys duty-free access for almost all RMG products in India. But such a facility is yet to boost our apparel export to India due to some obstacles created by the country in the form of countervailing and non-tariff barriers.”
He further said that apart from such barriers, poor port infrastructures and communication and proper trade facilitation and lack of arbitration on disputed export payment are also hindering Bangladesh’s apparel export to India.
Bangladesh’s apparel export to India was $16.06 million in 2009. But it reached $113.61 million in 2014.
The latest figure of Export Promotion Bureau (EPB) shows that Bangladesh exported apparel items worth $83.47 million during the July-March period of the current fiscal while the export stood $96.25 million in the fiscal year 2013-14. “No doubt India is an emerging market for local garments. But, if we analyze the volume of our yearly export to the country, it is very insignificant,” said Shahidullah Azim.
The BGMEA leader said that they have raised the issue in different forums in both countries. The government of Bangladesh also discussed the issue with the Indian counterpart. But nothing has done to ease these barriers. He urged the government to take pragmatic steps to ease the barriers, otherwise, the trade gap between Bangladesh and India will enlarge further.
In the fiscal 2013-14, Bangladesh imported goods worth $6.03 billion from India while its export stood at $456.63 million, showing a trade deficit of $5.57 billion with India.
Shahidullah Azim also emphasized the need for establishing a better connectivity with India to expand trade and investment between the two neighbouring countries.
“India could be a big market for local apparels in future once the prevailing hindrances are removed,” said Mohammad Hatem, former Vice-President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
He said, the apparel manufacturers have already set $50 billion export target by 2021 and to achieve the target we have to explore new markets like India.
The Indian government has given duty-free access of Bangladeshi garments to India as a gesture of better bilateral relations between the two countries. The facility encouraged the local garment exporters to explore the Indian market with much enthusiasm.
“But their enthusiasm is going down due mainly to appreciation of the local currency against the Indian Rupee and various non-tariff barriers and weak border infrastructure,” he added.
He urged the government to take immediate initiative in negotiation with the counterpart to solve the issues. If these barriers are not lifted, the benefit duty-free access facility provided by the Indian government will remain largely ineffective.
