Impact Of EU GSP Facilities On Export Growth Of Bangladesh: Especially On Readymade Garments Industry
Md. Rashedul Islam, Kamruddin Nur Maruf
Key Words: RMG, GSP, GDP, EBA ,Export Growth, EU-GSP, Trend, Unemployment
Abstract: Bangladesh is import oriented country. Balance of payment is always negative. But only readymade garments export balance is positive with trading countries especially with European Union. Bangladesh exports more than 50% RMG exportable product to EU market. There is strong correlation between RMG export under EU GSP and total RMG export to the world as well as with total merchandise export to the world. If there is EU-GSP sustained that will positively affect on the GDP. This positive effect also reducing unemployment, setup new industry and raise income level. On the other hand, if EU-GSP removes, it will create obstacle to export RMG products in EU market and negatively affect on GDP. Recently EU expressed concern about the working condition of Bangladesh because of Rana Plaza collapse and Tazrin fashion fire. They provide condition to retain EU-GSP facility. To retain EU-GSP facilities; Bangladesh should Complaint the condition of EU especially for the Garments sector. To retain RMG product demand in EU market, Bangladesh must be used modern technology to produce exportable product and need to find out the new RMG exportable market. Overall, Bangladesh uses the EU-GSP facilities that tremendously affect on the RMG export growth and total export growth.
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