New Delhi, March 13 (IANS). America had told that it is starting an investigation regarding the trade of 16 countries. Apart from India and China, the name of Bangladesh is also included in these countries. According to a report in Dhaka’s ‘The Morning Star’, the US has started an investigation in Bangladesh to find out whether their policies and production methods could harm American manufacturing.
The Office of the United States Trade Representative (USTR) started this investigation on Wednesday under the Trade Act 1974. It is a powerful trade enforcement tool used by the United States to challenge unfair foreign practices.
The report quoted USTR as saying that there is evidence of structural excess capacity and production in Bangladesh, which has a goods trade surplus (trade surplus) of about 60 lakh 50 thousand dollars with the US.
This trade surplus between the two countries is mainly generated by exports from the textile sector, where the government provides cash incentives to promote exports in 43 sectors, including home textiles and leather products.
USTR said Bangladesh’s cement industry has significant excess capacity despite its worst recession in years. Bangladesh’s national consumption of cement is projected to decline to 38 million tonnes in 2024, less than 40 per cent of total capacity, and decline further the following year.
“It is not good to see the country’s name on the investigation list,” said Mahmood Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association. According to the report, the issues that will be examined, such as production capacity, intellectual property rights and incentives, are not expected to have much impact on Bangladesh.
The report said that Bangladesh’s production is based on receiving work orders from international buyers, so more production is not possible.
Additionally, Bangladesh last year amended its labor laws in line with the recommendations of the International Labor Organization (ILO) and also ratified three important ILO conventions.
According to reports, the government has also started phasing out incentives on export receipts in preparation for exiting the category of least developed countries (LDCs) in November this year.
–IANS
KK/PM