According to the new scheme, after Bangladesh’s graduation from LDC, our RMG products will continue to enjoy duty free market access in the U.K. for the benefit while exporting to United Kingdom (UK). The DCTS will make it easier to enjoy duty free market access using imported raw materials. To know more about the scheme please browse the following link –
This may be noted that the DCTS is similar to the EU’s GSP Plus scheme. However, under the EU draft GSP proposal for 2024-34, Bangladesh’s apparel products may face textile safeguard measure (BGMEA and the Government of Bangladesh is trying to resolve this issue with the European Commission), but the UK DCTS does not include such textile safeguard provision. Even, for the economically vulnerable countries the DCTS appears more flexible in terms of implementing certain international conventions. However, as a nation we stand committed to continue the momentum in social and environmental standards we have achieved and even go further. This scheme will contribute to Bangladesh’s integration into the global economy, creating stronger trade and investment partnership with U.K.
It is important to mention that UK is the third largest export destination for Bangladesh. As far as the readymade garment product is concerned, we exported US$ 5.02 billion worth of clothing to the U.K. in the last fiscal year 2022-23, which was US$ 4.50 billion in FY2021-22 showing 11.78% growth year over year. And during January-July period of 2023 our RMG export to U.K. reached US$ 3.11 billion, up from US$ 2.72 billion in Jan-Jul 2022, by 14.11%.
You are aware that BGMEA is continuously working in the arena of market access under the apparel diplomacy initiative. The DCTS scheme has followed a robust consultation process with stakeholders. BGMEA was also invited to participate in the consultation, which we have done in due process and time. We have addressed all the issues relevant to our trade and we are grateful to the British Government for considering those positively.
As we have and are investing heavily to make our industry safer and sustainable, we see a growing commitment and interest among the British clothing brands and retailers on us. You might have noticed that the Managing Director of George Ms. Liz Evans visited Dhaka recently for the first time, I met her and she expressed her satisfaction on the progress we made and informed their position to further grow sourcing from Bangladesh. And a high level delegation of Primark and Associated British Food just visited Bangladesh. George G. Weston, CEO of Associated British Foods; Paul Marchant, Chief Executive of Primark; Paul Lister, Director of Legal Services and Company Secretary of Associated British Foods (ABF); Katharine Stewart, Group Corporate Responsibility Director of ABF; Steve Lawton, Primark Group Product Director; Jon Rolls, Group Director of Planning and Space; Emma Ormond, Head of Policy and Public Affairs of Primark; Matthew Rhodes, Head of Sourcing at Primark; and Filippo Poggi, Country Head of Primark Bangladesh office paid a courtesy visit to BGMEA office. Primark applauded the transformation our industry has made and willing to grow their business further with us. Therefore, I will encourage my fellow colleagues to make all possible efforts to explore the U.K. market further, especially for the emerging items like outerwear, formal wear and active wear segments and in non-cotton categories.
