Will not pay bills for RMG products if sanction imposed

Shawdesh desk:

Concerns about the readymade garment industry have increased further as a US buyer company has set a new condition that they will neither accept the RMG products nor settle the bills if any sanctions are imposed on Bangladesh.

This condition will be applicable even after the shipment of the products, the buyer company stated in a recently issued letter of credit to a local RMG manufacturer.

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), confirmed the matter to the Daily Sun on Wednesday.

“The recently adopted US labour policy has already raised concerns among us. This will further increase as the buyer has specified the new condition,” Faruque Hassan said.

Following the development, many banks may not open back-to-back loans against the original credit as there remain some uncertainties after exporting RMG goods, he said.

Responding to a query, he said the US has the authority to impose sanctions against any violators of labour rights, as its labour policy applies to all countries worldwide.

But it is a matter of question whether the decision concerning Bangladesh is politically motivated, he said.

“I believe our business will not be adversely affected, but the owners of the readymade garment industry may experience heightened tension following the letter,” he said.

Earlier on 16 November, The US announced a new labour policy stating that the country would impose trade sanctions in case of any labour rights violation.

Later on November 20, the Bangladesh Embassy in Washington D.C. wrote a letter to the Ministry of Commerce, alerting it about the concerns arising from the United States’ recent labour rights policy.

In the letter, the embassy also urged the stakeholders concerned to take the issue into cognisance on a priority basis.

According to the letter, the policy may be used as a political tool to take initiatives against Bangladesh on the pretext of labour issues.

Though the ‘Memorandum’ appears to be a global policy applicable to all countries, there are reasons to believe that Bangladesh may be one of the targets.

The labour issues in Bangladesh were specifically quoted by the Secretary of State and Acting Secretary of Labour at the launching ceremony [of the memorandum], the letter said.