U.S. Bangladesh Advisory Council
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PRESS RELEASE: 11/19/1009
U.S. BANGLADESH ADVISORY COUNCIL STATEMENT ON THE NEW PARTNERSHIP FOR TRADE
DEVELOPMENT ACT of 2009, H.R. 4101
Contact: press@usbac.org
WASHINGTON, DC: The U.S. Bangladesh Advisory Council welcomes the New Partnership for Trade
Development Act of 2009, H.R. 4101, however, we feel that the duty free benefits for Bangladesh are
too limited.
The initiative by Congressman McDermott is a good start in helping Bangladesh deal with a
multitude of development challenges. It is a tragedy that as a Least Developed Country where 70
million people live on $1.25 a day, Bangladesh faces U.S. duties of up to $570 million a year on just
$3.7 billion in exports, higher than the amounts faced by OECD countries. However, we express
concern that the duty free benefits under H.R. 4101 are restricted for several of the apparel product
categories that are crucial to Bangladesh’s growth. We note that the specific products, which face
these limitations, constitute more than 60% of the total value of Bangladesh’s apparel exports to the
US. Restricting benefits for these high value apparel items would slow down investment and stymie
job growth in Bangladesh, especially for women. The garment sector and associated industries
employ about 12 million people, 90 percent of them women. It is our hope that H.R. 4101 would allow
more meaningful market access to Bangladeshi garment exports, taking into account the potential of
accelerating poverty alleviation.
It is our understanding that the limits placed on Bangladesh are due to concerns that garment
exports from Africa may be imperiled. On this front we would like to make several points:
1. We recognize that our friends in African countries face special challenges and USBAC
supports the additional benefits in the legislation that favor African countries over Bangladesh, such
as quota free access for agriculture, third country fabric rules, and more generous development
assistance. However, only five countries in Africa account for 90 percent of apparel exports to the US.
Out of these, three countries, Mauritius, Swaziland and Kenya are not LDCs. Even Lesotho has a
higher per capita income than Bangladesh. Thus, we feel that Bangladesh should not be penalized
at the expense of more wealthy countries, especially at a time when garment exports to the US have
slowed down and factories have started closing due to the recession.
2. Bangladesh may not be in sub-Saharan Africa, but it too is struggling with extreme poverty—
roughly 70 million people are living on a $1.25 a day and 2 million children are suffering from acute
malnutrition. Bangladesh is also affected by yearly floods and cyclones that cripple its growth and
climate change will displace 20 million Bangladeshis by 2050. The garment industry has been an
engine of growth for the Bangladesh economy, helping it cope with such challenges – which are
often as significant as the challenges faced by Africa.
3. Countries in Africa as well as Bangladesh face intense competition from far larger exporters
such as China and Vietnam. The U.S. should provide more liberal access for LDCs like Bangladesh
to help them compete with much more economically powerful nations. The United States has long
granted African LDCs and non-LDCs duty free access for garments -- it is now time to provide similar
benefits to Bangladesh.
4. Africa would gain significantly from the enhanced access for agriculture under HR 4101. African
apparel lobbyists ignore the fact that the legislation promises significant gains for Africa’s agricultural
exports; most African countries produce agriculture, while only five African countries export apparel.
We hope that by the time the legislation is implemented into law, it will contain much more liberal
terms for Bangladesh. We also hope that trade capacity building funds proposed in the legislation
will provide support to Bangladesh in complying with international labor standards.
In general, USBAC supports the initiative to provide Bangladesh with more market access, however,
we feel that the legislation could be improved to help the millions of people who survive on a dollar a
day, whether they are located in Africa or Asia.
END#
U.S. BANGLADESH ADVISORY COUNCIL STATEMENT ON THE NEW PARTNERSHIP FOR TRADE
DEVELOPMENT ACT of 2009, H.R. 4101
Contact: press@usbac.org
WASHINGTON, DC: The U.S. Bangladesh Advisory Council welcomes the New Partnership for Trade
Development Act of 2009, H.R. 4101, however, we feel that the duty free benefits for Bangladesh are
too limited.
The initiative by Congressman McDermott is a good start in helping Bangladesh deal with a
multitude of development challenges. It is a tragedy that as a Least Developed Country where 70
million people live on $1.25 a day, Bangladesh faces U.S. duties of up to $570 million a year on just
$3.7 billion in exports, higher than the amounts faced by OECD countries. However, we express
concern that the duty free benefits under H.R. 4101 are restricted for several of the apparel product
categories that are crucial to Bangladesh’s growth. We note that the specific products, which face
these limitations, constitute more than 60% of the total value of Bangladesh’s apparel exports to the
US. Restricting benefits for these high value apparel items would slow down investment and stymie
job growth in Bangladesh, especially for women. The garment sector and associated industries
employ about 12 million people, 90 percent of them women. It is our hope that H.R. 4101 would allow
more meaningful market access to Bangladeshi garment exports, taking into account the potential of
accelerating poverty alleviation.
It is our understanding that the limits placed on Bangladesh are due to concerns that garment
exports from Africa may be imperiled. On this front we would like to make several points:
1. We recognize that our friends in African countries face special challenges and USBAC
supports the additional benefits in the legislation that favor African countries over Bangladesh, such
as quota free access for agriculture, third country fabric rules, and more generous development
assistance. However, only five countries in Africa account for 90 percent of apparel exports to the US.
Out of these, three countries, Mauritius, Swaziland and Kenya are not LDCs. Even Lesotho has a
higher per capita income than Bangladesh. Thus, we feel that Bangladesh should not be penalized
at the expense of more wealthy countries, especially at a time when garment exports to the US have
slowed down and factories have started closing due to the recession.
2. Bangladesh may not be in sub-Saharan Africa, but it too is struggling with extreme poverty—
roughly 70 million people are living on a $1.25 a day and 2 million children are suffering from acute
malnutrition. Bangladesh is also affected by yearly floods and cyclones that cripple its growth and
climate change will displace 20 million Bangladeshis by 2050. The garment industry has been an
engine of growth for the Bangladesh economy, helping it cope with such challenges – which are
often as significant as the challenges faced by Africa.
3. Countries in Africa as well as Bangladesh face intense competition from far larger exporters
such as China and Vietnam. The U.S. should provide more liberal access for LDCs like Bangladesh
to help them compete with much more economically powerful nations. The United States has long
granted African LDCs and non-LDCs duty free access for garments -- it is now time to provide similar
benefits to Bangladesh.
4. Africa would gain significantly from the enhanced access for agriculture under HR 4101. African
apparel lobbyists ignore the fact that the legislation promises significant gains for Africa’s agricultural
exports; most African countries produce agriculture, while only five African countries export apparel.
We hope that by the time the legislation is implemented into law, it will contain much more liberal
terms for Bangladesh. We also hope that trade capacity building funds proposed in the legislation
will provide support to Bangladesh in complying with international labor standards.
In general, USBAC supports the initiative to provide Bangladesh with more market access, however,
we feel that the legislation could be improved to help the millions of people who survive on a dollar a
day, whether they are located in Africa or Asia.
END#