BGMEA hails Trump’s dumping of TPP

The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) is happy with US president Donald Trump's signing of an executive order, withdrawing from the Trans-Pacific Partnership (TPP) negotiations. This has raised hopes of a boost in Bangladeshi readymade garments exports to the USA, the BGMEA feels. The association president, Siddikur Rahman, welcomed Trump’s decision. On Monday, Trump began dismantling the behemoth trade deal he inherited from his predecessor, by signing an executive order to withdraw from the TPP negotiations. The move sends signals to Democrats and leaders in foreign capitals around the world that Trump's rhetoric on trade during the campaign is turning into action.
During the campaign, Trump had vowed to withdraw the US from the Pacific trade deal, commonly known as the TPP, which he argued was harmful for American workers and manufacturing.
The TPP or the Trans Pacific Partnership Agreement (TPPA) is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the USA and Vietnam.
The finalised proposal was signed on February 4, 2016, in Auckland, New Zealand, concluding seven years of negotiations. Former US president Barack Obama treated the trade deal as a priority during his tenure, and this particular deal would have bolstered America's position in the Asia-Pacific region. As a businessman, Trump will take decisions in favour of the business community, as he knows the way to make gains in business, the BGMEA president said. The TPP agreement was signed on October 5 last year. The 12-country Pacific Trade Partnership, agreed in Atlanta on a broad agenda to lower trade barriers and increase investment protections in a region comprising 40 per cent of the global economy.   
Siddikur Rahman said as Bangladesh was not a signatory, the country’s readymade garments sector (RMG) was likely to suffer in the absence of preferential treatment for RMG exports to the TPP member countries.
“Some of our closest competitors like Vietnam paid 8.38 per cent duty for RMG exports, but would not have had to pay anything after TPP came into effect. That was bad news for our largest export earning sector,” he added.
Although the textiles and apparel chapter of the agreement is programmed with a strict yarn-forward rule of origin, it was certain to give the TPP countries the privilege of low or zero tariff for exporting goods to member-countries, thus greatly impacting the garments and textile sector in Bangladesh, he added. He said Vietnam, a major competitor of Bangladesh, would have benefited from the TPP.
However, Policy Research Institute (PRI) executive director Dr Ahsan H Mansur told The Independent that Trump’s decision would not have any impact on the RGM sector in Bangladesh.
He said the TPP had not come into effect and hence Trump’s move would not in any way alter Bangladesh’s RGM exports to the US market. Instead, he advised caution about Trump’s inward-looking policy.

BGMEA hails Trumps dumping of TPP

The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) is happy with US president Donald Trumps signing of an executive order, withdrawing from the Trans-Pacific Partnership (TPP) negotiations. This has raised hopes of a boost in Bangladeshi readymade garments exports to the USA, the BGMEA feels. The association president, Siddikur Rahman, welcomed Trumps decision. On Monday, Trump began dismantling the behemoth trade deal he inherited from his predecessor, by signing an executive order to withdraw from the TPP negotiations. The move sends signals to Democrats and leaders in foreign capitals around the world that Trumps rhetoric on trade during the campaign is turning into action. During the campaign, Trump had vowed to withdraw the US from the Pacific trade deal, commonly known as the TPP, which he argued was harmful for American workers and manufacturing. The TPP or the Trans Pacific Partnership Agreement (TPPA) is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the USA and Vietnam. The finalised proposal was signed on February 4, 2016, in Auckland, New Zealand, concluding seven years of negotiations. Former US president Barack Obama treated the trade deal as a priority during his tenure, and this particular deal would have bolstered Americas position in the Asia-Pacific region. As a businessman, Trump will take decisions in favour of the business community, as he knows the way to make gains in business, the BGMEA president said. The TPP agreement was signed on October 5 last year. The 12-country Pacific Trade Partnership, agreed in Atlanta on a broad agenda to lower trade barriers and increase investment protections in a region comprising 40 per cent of the global economy. Siddikur Rahman said as Bangladesh was not a signatory, the countrys readymade garments sector (RMG) was likely to suffer in the absence of preferential treatment for RMG exports to the TPP member countries. Some of our closest competitors like Vietnam paid 8.38 per cent duty for RMG exports, but would not have had to pay anything after TPP came into effect. That was bad news for our largest export earning sector, he added. Although the textiles and apparel chapter of the agreement is programmed with a strict yarn-forward rule of origin, it was certain to give the TPP countries the privilege of low or zero tariff for exporting goods to member-countries, thus greatly impacting the garments and textile sector in Bangladesh, he added. He said Vietnam, a major competitor of Bangladesh, would have benefited from the TPP. However, Policy Research Institute (PRI) executive director Dr Ahsan H Mansur told The Independent that Trumps decision would not have any impact on the RGM sector in Bangladesh. He said the TPP had not come into effect and hence Trumps move would not in any way alter Bangladeshs RGM exports to the US market. Instead, he advised caution about Trumps inward-looking policy.