Bangladesh could not utilise more than one-third of the GSP facilities in clothing sector last year due mainly to strict rules of origin criteria and incompetence in high value garments. According to data compiled by the European Union, the country exported apparels worth Euro 3.657 billion in 2005 to different European countries under the Generalised System of Preference (GSP) facilities.

The data also said that the country was able to utilise 64.5% of the GSP facilities in apparel segments. European countries provide duty and quota free entry of all products except arms from all least developed countries (LDCs) and some developing nations with rules of origin criteria.

The knitwear sector utilised 85% GSP facilities and non-knit products 27% worth Euro 2.191 billion and Euro 1.334 billion respectively during the same period.

The data show the goods made of other textile articles were exported to the EU sates worth Euro 131 million, which utilised 95.20 per cent of the GSP facilities for the category. Readymade garment makers said Bangladesh lacks necessary backward linkage in producing high value garments, which hinders utilisation of European GSP facilities.

Meanwhile, the Bangladesh embassy in Belgium recently apprised the Commerce Ministry of the GSP situation in the EU and suggested immediate initiatives to exploit all the facilities.