The Safeguards Committee of the Ministry of Trade, Indonesia, on Friday reportedly notified the World Trade Organisation (WTO) that it has initiated a safeguard investigation on import of apparel products.
Though not aimed at any particular country, this move by Indonesia which followed an application by the Indonesia Textile Association requesting the Government on implementing safeguard measures against imports of products that could lead to imposition of duty, will hurt Bangladesh’s apparel exports to the Southeast Asian nation, claimed experts and industry insiders.
It may be mentioned here that in fiscal year 2019-2020, Bangladesh exported apparels worth US $ 27.91 million to Indonesia, of which the value of woven products was US $ 13.44 million and knitwear products US $ 14.48 million.
Further, earnings from apparel exported constituted more than 54 per cent of Bangladesh’s total export worth US $ 51.42 million to Indonesia.
Apart from exports, the recent move by Indonesia, many feel, could adversely impact the ongoing negotiation between the two countries to sign a preferential trade agreement or PTA.
The next round of discussion, pertaining to the same, is reportedly scheduled to be held on 12 October.
