TBT on garments sector in Bangladesh
Contents
Introduction:
The TBT exists to ensure that technical regulations, standards, testing, and certification procedures do not create unnecessary obstacles to trade. The agreement prohibits technical requirements created in order to limit trade, as opposed to technical requirements created for legitimate purposes such as consumer or environmental protection. The WTO Agreement on Technical Barriers to Trade (TBT) seeks to protect the interests of: (i) Importers by allowing them to protect human, plant and animal health and life; consumers; environment; national security; and other policy interests by imposing technical regulations and standards on their imports. (ii) Exporters by assuring them that these standards, regulations and conformity assessment procedures do not impede trade. Now in Bangladesh, 2 million garment workers are working in the RMG units, of whom 80 per cent are women. RMG roughly covers 76 per cent of the total export of the country and is the highest earning industry in the economy. 2 million workers in 4,000 factories, which is about one-fourth of the number of employees engaged in the manufacturing sector, constitute the real backbone of the country's economy. Study shows that the RMG sector and related upstream and downstream activities are estimated to contribute an income of about $ 5.0 billion which is equivalent to about 9 per cent of Bangladesh's current GDP. Comparatively, over the same period Bangladesh's ne disbursement of aid was to the tune of only about $ 800 million. Thus, RMG sector's contribution to Bangladesh's balance of payments and foreign exchange reserves also cannot be understated. TBT is an agreement under WTO which is closely related to RMG sectors. As RMG contributes mostly to the country’s economy, any kind of nontariff barrier may affect it’s contribution if it is imposed by the deceptive way. So, TBT is good but sometimes it creates problem to the importing nation who imports products.
Trade
Introduction:
The TBT exists to ensure that technical regulations, standards, testing, and certification procedures do not create unnecessary obstacles to trade. The agreement prohibits technical requirements created in order to limit trade, as opposed to technical requirements created for legitimate purposes such as consumer or environmental protection. The WTO Agreement on Technical Barriers to Trade (TBT) seeks to protect the interests of: (i) Importers by allowing them to protect human, plant and animal health and life; consumers; environment; national security; and other policy interests by imposing technical regulations and standards on their imports. (ii) Exporters by assuring them that these standards, regulations and conformity assessment procedures do not impede trade. Now in Bangladesh, 2 million garment workers are working in the RMG units, of whom 80 per cent are women. RMG roughly covers 76 per cent of the total export of the country and is the highest earning industry in the economy. 2 million workers in 4,000 factories, which is about one-fourth of the number of employees engaged in the manufacturing sector, constitute the real backbone of the country's economy. Study shows that the RMG sector and related upstream and downstream activities are estimated to contribute an income of about $ 5.0 billion which is equivalent to about 9 per cent of Bangladesh's current GDP. Comparatively, over the same period Bangladesh's ne disbursement of aid was to the tune of only about $ 800 million. Thus, RMG sector's contribution to Bangladesh's balance of payments and foreign exchange reserves also cannot be understated. TBT is an agreement under WTO which is closely related to RMG sectors. As RMG contributes mostly to the country’s economy, any kind of nontariff barrier may affect it’s contribution if it is imposed by the deceptive way. So, TBT is good but sometimes it creates problem to the importing nation who imports products.
Trade