UK must lead efforts to safeguard global trade, supply chains: Rushanara

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British lawmaker Rushanara Ali has written to the Chancellor and the Secretary of State for International Trade urging them to lead efforts to protect global trade and offer chains. 

The letter highlighted the damage due to multinational Western organizations backing out of business contracts and impacts on Bangladesh. 

It included the example of the Readymade Garments (RMG) industry in Bangladesh, where $3.7 billion of orders have already been cancelled already. 

A complete of £2.4 billion of these contracts are from UK-based retailers, including ASDA, New Look, Edinburgh Woollen Mills, Peacocks, Sports Direct and Urban Outfitters. 

“In addition, Bangladesh may be the world's major producer of garments and textiles after China. If this supply chain collapses, then your world's capacity to create PPE will be damaged," said Rushanara Ali, MP.

“The UK must lead efforts to make certain that global trade and offer chains are protected," she said.

Rushanara Ali called on the united kingdom government to take all the necessary steps to aid those British companies that are struggling to remain afloat, so they could fulfill their obligations to suppliers. "In doing this, this will protect those who work to supply our UK high-street goods." 

She said it really is morally reprehensible for big multinational firms, who are able to pay, to back out of their contracts.

"In doing this, they’re putting an incredible number of workers and their own families vulnerable to starvation. Their actions are potentially destabilising countries and damaging the prospect of recovery from a worldwide recession," said Rushanara Ali.

The coronavirus pandemic has sent global markets into turmoil and the detrimental effect on the global economy continues to evolve at an unprecedented speed.

Global supply chains have already been disrupted, local economies have already been wrecked by businesses collapsing, and millions have lost their jobs, according to a note received from Rushanara Ali’s office on Monday. 

Those countries with developing economies will be hit the hardest. 

On March 31, Bangladesh Garment Manufacturers and Exporters Association reported that twenty five percent of garment employees (around 1 million) had lost their jobs or have been furloughed without pay, the message reads. 

The Bangladesh government has already established to step in and provide the factories with loans to finance, as some multinational organizations have failed to honour their contracts, and also have not paid what they owe.
Source: https://unb.com.bd

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