New EU GSP Rules May Boost Bangladesh'S Clothing Exports

European relaxation Spin Trade GSP (GSP) rules are designed to help the least developed countries. Trade Therefore, Bangladesh clothing Exit Hopefully it will be promoted.

EU acceptance has accepted the new rules of origin (RoO) and is expected to be implemented in January 1st.

One of the major changes may be the production of clothing, allowing a few garment enterprises to process or make garments one step at a time, that is, directly using fabric processing or making garments, instead of two steps processing, that is, from yarn to fabric two links, and then to the final product.

Most garments exported by the least developed countries may enjoy EU tariff free access. The EU will not consider the origin of raw materials. In general, the EU's import duty on garments is 12%.

The general preferential system is a trade agreement that allows imports from developing countries to enjoy low tariffs or zero tariffs. Rules of origin find that imported products originate from countries enjoying GSP.

Once the new rules of origin are implemented, Bangladesh exporters who use imported fabrics to make garments and then export to the EU will be the beneficiaries of GSP.

Many woven apparel exporters import the fabric they need from China because Bangladesh's domestic production is backward and can not meet the needs of the knitting sector. Domestic backward enterprises will face competition from foreign countries, as many garment manufacturers import fabrics from China and other countries. (