Business

New EU Rules Could Disrupt Bangladesh's Garment Industry

The European Union has slapped new security screening on imports from Bangladesh, a move that is likely to make it costlier for businesses in the South Asian country to sell products to EU nations. Just over half of Bangladeshi exports go to the European bloc, accounting for US$ 18.68 billion in revenues during the last fiscal year. Those shipments, by air or sea, will now have to be screened by bomb-detecting dogs and devices. Bangladesh has none of these facilities, so cargo will have to be routed through a third country where security screening is possible.

Siddiqur Rahman, president of the Bangladesh Garments Manufacturers and Exporters' Association, representing 70% of the textiles industry, described the move as "disastrous." During fiscal 2015-16, the garment industry exported US$ 17.15 billion in goods to the EU - 60% of the industry's exports".