Indonesia initiates safeguard probe of RMG import

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Indonesia has initiated a safeguard investigation regarding its import of apparel products that may negatively affect Bangladesh’s export of the merchandise to the Southeast Asian country.

Indonesian Safeguards Committee of the ministry of trade on Friday notified the problem to the World Trade Organisation.

The committee said that it initiated the investigation about the import of the articles of apparel and clothing accessories following a credit card applicatoin from the Indonesia Textile Association for a safeguard measures against the import of the merchandise.

The move, though not any country-specific, came at a time when both Bangladesh and Indonesia are in negotiations to enter into a preferential trade agreement (PTA).

Another round of negotiations will be held in October 21-22. Both countries are scheduled to carry meeting today on the guidelines of origin issue for the PTA.

The most recent development may affect the negotiation process and also Bangladesh’s export to the united states if Indonesia finally imposes any safeguard duty following the investigation is completed, trade specialists and exporters said.

Bangladesh in the last fiscal year 2019-2020 exported readymade garment products worth $27.91 million to Indonesia, which is more than 54 % of the country’s total export of worth $51.42 million to Indonesia.

Of the $27.91 million, the worthiness of knitwear products export was $14.48 million and the quantity of woven export was $13.44 million, according to Export Promotion Bureau data.

Based on the WTO, a safeguard investigation seeks to determine whether increased imports of something are causing, or is threatening to cause, serious problems for a domestic industry.

Throughout a safeguard investigation, importers, exporters and other interested parties may present evidences and views and react to the presentations of other parties, it stated.

A WTO member may take a safeguard action like the restricting of imports of something temporarily only when the increased imports of the merchandise are found to be causing, or threatening to cause, serious injury to the local producers, based on the WTO.

Evaluating the use of the association, Indonesia in its notification said that there was a satisfactory evidence to justify the initiation of a safeguard investigation.

The products that fall under the investigation include overcoats, suits, shirts, blouses, t-shirts, singlets and other vests, jerseys, pullovers, cardigans, babies’ garments and clothing accessories, other made up clothing or elements of garments, jackets, blazers, trousers and some other items.

A senior trade official on Sunday told MODERN that although safeguard investigation had not been any country-specific move, it could create trouble in the PTA negotiation process.

There is absolutely no provision in the draft PTA of excluding Bangladeshi products from such types of duties, he said.

Signing a PTA won't bring any expected outcome for Bangladesh if such duty is imposed as RMG products dominates the Bangladesh’s export to Indonesia, he said.

The commerce ministry and the Bangladesh Trade and Tariff Commission will continue to work on the issue, he added.

Replying to a question whether Bangladesh’s apparel export will be damaged if Indonesia imposes safeguard duty after investigation, Bangladesh Garment Manufacturers and Exporters Association Rubana Huq said, ‘Every bit counts.’

She said that it had been important to have the ASEAN as a market, which is projected to grow in to the 4th major economy by 2030.

It is also vital that you explore fashion wear suited for the Muslim population in Indonesia, she said.

So, with regard to both market and diversification, Bangladesh shouldn't lose focus on the ASEAN market, she added.

Based on the Indonesian notification, stakeholders having substantial interests and interested parties in this investigation should submit written request within 15 days from the date of initiation October 1. 
Source: https://www.newagebd.net

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