FTA with Latin Mercosur bloc could boost garment trade: BGMEA

A trade agreement with Mercosur, a common trade bloc of five South American countries with more than $3 trillion in gross domestic product, could create huge garment export potential for Bangladesh, experts said today.

The comment came during a meeting between leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Uruguayan Ambassador to Bangladesh Alberto Guani at the association office in Dhaka.

Currently, local garment exporters face high duties when sending apparel items to the promising Mercosur countries—Brazil, Bolivia, Argentina, Uruguay, and Paraguay. BGMEA leaders said a trade agreement with the bloc would benefit both sides through expanded trade.

In particular, by using Uruguay's efficient ports and advanced transportation infrastructure, Bangladeshi garment exporters would be able to supply products easily across the entire Mercosur region, according to a statement issued by the BGMEA.

At today's meeting, both sides discussed the need for Bangladesh to pursue a free trade agreement (FTA) with the Mercosur bloc to address challenges the South Asian country will face after graduating from the least developed country category.

Bangladesh would receive special preferences for garment exports to Uruguay if it imports wool from the Latin nation under the proposed FTA, which would be beneficial for both countries, said BGMEA Director Sumaiya Islam.

Honorary Consul of Uruguay in Bangladesh Mostafa Quamrus Sobhan said Uruguayan Merino wool carries internationally recognised traceability certification, which Bangladeshi garment manufacturers could use to become more competitive in the global market.

BGMEA Senior Vice President Inamul Haq Khan highlighted various aspects of Bangladesh's garment industry and sought state-level cooperation to increase garment exports from Bangladesh to Uruguay.

He noted that although Bangladesh is the world's second-largest garment exporter, it has not yet significantly penetrated the Latin American market, and the country is keen to capitalise on this opportunity.

BGMEA Director Shah Rayeed Chowdhury said Uruguay, in particular, could act as the main "gateway" for Bangladesh's readymade garment exports to the wider Mercosur region.

The ambassador of Uruguay expressed interest in increasing garment imports from Bangladesh and also proposed exporting world-class, fully traceable wool from his country to Dhaka.

BGMEA Director Sheikh Hossain Muhammad Mustafiz said importing wool from Uruguay would allow Bangladesh to diversify its product range and strengthen its position in the Latin American market.

Ambassador Guani informed that Uruguay has requested Bangladesh's foreign ministry to send a delegation, with BGMEA included in the team.

At the event, BGMEA leaders also emphasised the need to simplify visa procedures.