Work orders diverted from China, Vietnam may land in Bangladesh

The Trump administration's tariff hike on China and Vietnam may divert work orders to Bangladesh, said a top leader of the Forum Panel, which will contest the upcoming Bangladesh Garment Manufacturers and Exporters Association (BGMEA) elections, today.

It would be preferable if Bangladesh could follow other countries in negotiating a preferential trade agreement (PTA) or free trade agreement (FTA) with the US, said the leader, Mahmud Hasan Khan, at a press conference at the Pan Pacific Sonargaon Dhaka.

However, Bangladesh may not get all the diverted work orders as India and Indonesia are also in advantageous positions in terms of Trump's tariff rate, added Babu, also the managing director of Rising Group.

If the Trump administration considers reciprocal tariffs in the true sense, the tariff in the case of Bangladesh would be very low, he said.

For instance, the average tariff rate on the import of US goods by Bangladesh is 6 percent, while the average tariff on the export of locally made goods to the US is over 16 percent. So, in the true sense, the Trump tariffs are not reciprocal, he said.

The Forum Panel leader also said he would create a fund comprising "forced savings" if elected, so workers could be provided financial assistance in case of disaster.

Garment workers have demonstrated numerous times for salaries and bonuses ahead of Eid festivals, as a few factory owners were unable to make due payments for different reasons, he said.

The fund from the "forced savings" could be used for making such payments, he said.

In his electoral pledge, Babu said he would lobby with the government for a separate ministry on textiles and garments, as they currently need to depend on the commerce ministry, which is often busy with other activities.

Moreover, he also pledged to assist small and medium enterprises and new entrepreneurs so they could gradually grow bigger.

He also said he would strengthen monitoring of the process for availing BGMEA membership so that only eligible exporters get access, work for market and product diversification, and ensure accountability of the elected office-bearers.

Other agendas include expediting customs automation, improving workers' safety and rights, and protecting the environment.

The BGMEA elections, scheduled to be held on May 31 through polling centres in both Dhaka and Chattogram, will see 35 director posts being contested.