Bangladesh Garment Manufacturers and Exporters Association (BGMEA) demanded duty-free access for RMG export to Brazil which is made from the cotton imported from Brazil. Recently, on a trip to Brazil, BGMEA proposed it to the country’s policy-makers.
BGMEA President Rubana Huq said, “If they reduce the tariff, we will be able to grab a huge opportunity. But in return, Brazil is demanding permission to export beef in Bangladesh.”
“There is a huge market opportunity in Brazil. The country imports RMG products of about 7bn US$. China is the first supplier and after that, we are in the second position,” she added.
Economists are saying that in order to get the benefits on RMG export to Brazil, Bangladesh should allow the import of beef from Brazil. As we are already importing beef from India, Australia.
Executive Director of PRE, Ahsan H Monsur said, “We should look over the matter carefully. We need to check if there’s any unnecessary restriction and unfair discrimination is being taken place against Brazil. If there’s any, then we should try to remove them for the purpose of our long-term trade benefits.”
Brazil is a big economy possessing the 8th position in the world. The country has a population of 210M and the per capita income is 9,140US$.
Bangladesh’s garment export to Brazil amounted to $160.51 million last fiscal year and $158.38 million in fiscal 2017-18, according to data from the BGMEA.
According to BGMEA, the RMG products were exported to Brazil worth of 300M US$ in which Bangladesh has to pay 35% tariffs.
Currently, Brazil is leading a business alliance in North-America which also consists of three other countries- Argentina, Paraguay, and Uruguay. All these countries are in great economic conditions.
Experts think that if Bangladesh can grab the market of Brazil, it’ll be easier to catch the other three countries’ markets as well in the future which could boost the country’s economy.