Steer clear of IPR violations

BGMEA urges members after US warnings
Star Business Report

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged members to remain more careful about rights ownership when making products to avoid counterfeiting goods and violating intellectual property rights (IPRs). 

The apex body of garment exporters made the call in its letter to its members in response to the alleged export of counterfeit products from Bangladesh.

The United States Trade Representative (USTR), the American government's chief trade negotiating body, sent a letter to Bangladesh on February 10 alleging that the IPRs rules on export of garments, footwear and electronic goods have been violated.

The BGMEA said the American Apparel & Footwear Association (AAFA) and Paris-based Union Des Fabricants (UNIFAB) made a submission to the USTR.

It sought to include Bangladesh, China and European Union in the priority watch list of the USTR's special review on the alleged export of counterfeit goods, including clothing.

The AAFA in its submission mentioned that "counterfeits from Bangladesh are being seized at an increasing rate globally as counterfeit production is growing", said the BGMEA in its letter.

The AAFA also said "well-organised Bangladesh-run counterfeiting networks effectively exported counterfeits for sales to consumers in the United Kingdom, the Philippines, Malaysia and other countries".

The BGMEA said it has taken the matter seriously and "we are working with the government".

The commerce ministry also responded to the allegations of the USTR through a letter. It said Bangladesh would strictly abide by the IPRs once it makes the United Nations status graduation from an LDC to a developing nation in 2026. Bangladesh is getting ready to follow the IPR rules, according to the commerce ministry letter.

Bangladesh, as a least developed country (LDC), has been enjoying some benefits under the IPRs rules of World Trade Organization (WTO).

The apex body of apparel exporters said "Though Bangladesh enjoys international support measures in the form of development assistance and certain waivers, however we should not label ourselves as a source of counterfeit goods."

"So far, we have focused mostly on social and environmental compliance issues; we now have to pay more attention to those emerging issues governing trade across borders," said BGMEA President Faruque Hassan, requesting members to remain careful.

"We should commit ourselves to say no to any business that involve violation of IPRs. If we can do so, it will give us an extra edge as we are transitioning to a middle income country," said Hassan.

"On the other hand, we will be able to retain the trust and confidence of our valued customers which we have built over more than 40 years," he said.

The US is the single-largest export destination for Bangladesh where the local suppliers exported goods worth more than $10 billion last fiscal year of which 95 per cent were garment items.