Bangladesh’s inclusion in US probe is ‘uncomfortable’: BGMEA chief

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan has said it is “uncomfortable” that Bangladesh has been included alongside 15 other countries in a US investigation into whether nations are maintaining excess capacity and overproducing in their manufacturing sectors.

In an immediate reaction to Prothom Alo today, he said there is no logical justification for including Bangladesh in the investigation.

Mahmud Hasan Khan said that after reading the statement issued by the Office of the United States Trade Representative, it appeared that the hearing would examine whether any of the16 countries were involved in unfair practices, violations of labour rights, incentives for product manufacturing and exports, or violations of intellectual property rights.

“If evidence of such allegations is found, they may impose additional tariffs,” he said.

He added that Bangladesh’s inclusion in the investigation is uncomfortable, but he does not see it as a major challenge.

According to him, intellectual property practices in Bangladesh’s manufacturing sector remain limited. The market for American brands is also very small in the country. The labour rights issue has already been addressed. Export incentives are also very small, he said.

He noted that questions could arise regarding subsidies in agriculture, but pointed out that the United States itself provides agricultural subsidies. Our government only provides subsidies for fertiliser, he added.

Mahmud Hasan Khan said the United States may have initiated the investigation to protect its domestic industries. While the US consumer market is the largest in the world, he believes Bangladesh’s inclusion in the probe is not justified.

The bulk of our exports to the US is ready-made garments. And the types of garments we produce are not something American businesses would manufacture, he said.

The BGMEA president also said that since Bangladesh’s name has appeared in the investigation, the government’s Ministry of Commerce (Bangladesh) should take proper preparatory measures in advance so that the issue can be addressed effectively.

The United States has launched an investigation into 16 countries, including Bangladesh, to determine whether they have excess production capacity and are overproducing in their manufacturing sectors. Jamieson Greer, the US trade representative, announced the launch of the probe on Wednesday.

In a press release issued the same day, the Office of the United States Trade Representative said the investigation would be conducted under Section 301 of the Trade Act of 1974.

The investigation will examine whether the policies, measures, or production structures of the countries concerned are unreasonable or discriminatory toward US trade and whether they are harming American commercial interests.

Besides Bangladesh, the other countries under investigation are China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Mexico, Japan, and India.