Name: Towshika Amin Zenifar

ID: 3-17-36-035
RMG export to the EU: The challenges ahead of Bangladesh

About two years ago, Bangladesh Garments Manufacturers and Exporters Association
(BGMEA) had set a goal to increase annual export of readymade garments to 50
billion US dollars by 2021. Although not much has been heard recently about this,
the RMG export has already started facing many challenges.

The international trade unions have been continuously pressurizing the importing
countries for substantive progress on the commitments made by Bangladesh during
the launching of 'Sustainability Compact' in 2013. The focus is mainly on trade union
rights in the factories inside and outside the EPZs. Bangladesh has repeatedly been
warned by the EU about the possibility of missing the duty-free access to its market
unless there is substantive improvement on the issues related to workers' rights.

Bangladesh has sent a draft to the ILO with some positive changes in the Labor Act
as suggested by the ILO Expert Committee. All Bangladeshi exports have been
subjected to adherence to certain UN and ILO Conventions. Firstly, Bangladesh will
lose EBA and be bracketed as a beneficiary of General GSP. Secondly, Bangladesh
will miss relaxed rules of origin enjoyed so far as LDC. An other immediate challenge
the Bangladesh RMG export will face is the new GSP administration in export to the
EU. Depending on the decision of Bangladesh all the GSP certificates for the EU will
be issued by the exporters. The new system of GSP certificatio n will require
appropriate preparation for individual exporters as well as for BGMEA/BKMEA.

The most immediate challenge is to convince our global partners that there is a sincere
commitment to remain engaged with them in improving the working conditions in the
RMG factories in terms of occupational safety and rights of the workers.

Question:
1. What is the goal that was set by BGMEA?
2. What did EU warn Bangladesh about?
3. What are the export challenges ahead of Bangladesh?