Concerned about US sanctions, but business not affected yet: BGMEA president

Faruque Hassan, the president of BGMEA, on Wednesday said the recent US sanctions on Rapid Action Battalion (RAB) and its top officials were concerning, but the readymade garments businesses had not faced any fallout from it.

Responding to reporters' questions at a dialogue organised by the Economic Reporters' Forum (ERF) in the capital's Bijoynagar, he said, "We are working with them and keeping in touch with buyers. Our buyers have also spoken to us on this issue. None of our orders have been cancelled, although some may have been delayed due to Omicron."

Saying that the United States of America was a big market, the president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said the only concern was what the US wanted to do next. "But I do not think there will be any sanctions on our business."

The US recently sanctioned a number of former top RAB officials and the organisation over allegations of human rights abuses.

The government of Bangladesh has spoken on the issue, with the foreign minister requesting the US state secretary to reconsider the sanctions in the beginning of the year.

Speaking at the ERF dialogue, Faruque also touched upon the future of the RMG sector and the challenges the industry was facing.

At the same time, he also expressed hope that political parties would help ensure that factories keep operating during the next elections.

On the new Omicron variant, the BGMEA president hoped that the current export trend – with Bangladesh exporting a record $4 billion of garment items in December – will continue till at least April.

Asked if Bangladesh had the capability of increasing exports by producing goods worth $7-8 billion, the BGMEA president said at present the country did not have the capacity to do so.

"We are, however, working to increase the capacity of the factories. Although there is no such thing as night shifts in the garment sector, some factories have started it," he said.

Responding to a question about allegations of factory owners trying to suppress trade unions, Faruque said there were some factory owners who had expressed an interest in trade unions. He, however, pointed out that some states in the US had banned trade unions.

The BGMEA president also pointed out that as cotton and yarn were the main raw materials for garments in Bangladesh, the country could look to become an exporter of yarn in the future.

He, however, said that local spinning mills had recently increased the price of yarn to make extra profit, but these high prices could discourage importers.

Calling for a phased currency devaluation, he said, "Our currency is not yet export friendly."

Vice President of ERF Shafiqul Alam presided over the function, while its General Secretary SM Rashidul Islam was the moderator. Senior members of the organisation were also present.