Bangladesh garment exports to Japan may increase to two billion US dollar within a couple of years should the country get duty-free market access to that country under relaxed rules of origin. With over $24 billion annual imports, Japan apparel market is very much selective that demands capacity development of Bangladeshi exporters, speakers said at a discussion, organised by the Centre for Policy Dialogue, a think-tank.

Former finance minister M Syeduzzaman presided over the discussion that was participated by the commerce minister, Faruk Khan, former commerce minister, Amir Khasru Mahmud Chowdhury, and the Japanese ambassador in Dhaka, Tamotsu Shinotsuka. Khondaker Golam Moazzem, a senior research fellow of the CPD, presented the keynote paper while the president of Bangladesh Knitwear Manufacturers and Exporters Association, Fazlul Hoque, described the industry potentials and his experience in Japanese market. Japan’s apparel imports crossed $24 billion in 2008 and the market is offering more as Moazzem said, ‘Under the changing market dynamics, Japanese buyers [importers] have initiated new strategy to diversify their import base.’ The new Japanese strategy is to shift focus from one country [China] to a number of potential countries.

Fazlul Hoque said Bangladesh could be placed next to China as he observed a huge interest of Japanese importers in sourcing from Bangladesh. As an LDC, Bangladesh gets duty-free access to Japan but rules of origin for importing knitted wear into Japan was a major barrier, said Hoque. The rules require locally manufactured yarns for knitted garments. Hoque pointed out that Bangladesh does not produce fancy yarns or non-cotton yarns, which are necessary for diversified knitted wear productions. In the past 2008-2009 fiscal year, Bangladesh exported $74 million worth garments to Japan and the year-on-year shipment growth was double.

The BKMEA president said if relaxed rules of origin were provided, two billion dollar worth shipments of Bangladeshi garments to Japan within a couple of years or so could be achieved. Amir Khasru Mahmud Chowdhury said duty-free access is a precondition to boosting exports. So, government should pursue the Japanese authorities on providing easy rules of origin facility. Khasru said that going into typical trade bargain Bangladesh would not gain such a facility but if the facility is sought as an aid for trade that may inspire Japan. Japan is the top and very sympathetic donor to Bangladesh, he cited. ‘The government should negotiate with Japan by focusing on the issue as an aid for trade case,’ suggested Khasru.

The Japanese ambassador said rules of origin was set same for all LDC beneficiaries but he did not rule out possibility of changed and convenient rules. The embassy in Dhaka has taken attention to rules of origin issue, said the Japanese ambassador, ‘I have already communicated with Tokyo in this regard.’ Tamotsu Shinotsuka said Bangladesh had an image problem in Japan as many there don’t know capacity of Bangladesh industry. The former president of the Dhaka Chamber of Commerce and Industry Sayeeful Islam said Japanese business culture was different than others and importers show zero tolerance to quality and timely shipment. The commerce minister, Faruk Khan, hoped that strikingly explored Japanese market would help Bangladeshi exporters to offset shocks from recession hit western markets. He assured exporters that government would provide all supports including diplomatic efforts for attaining more convenient trade facility from Japan.

-New Age