Post-quota crunch

The Chinese boom has been the outcome of price undercutting by a maximum of 48 per cent. Moreover, China has out-speeded us by miles in shipping the merchandise to the US market. After the quota phase-out, China in January alone, delivered such a quantum of apparels in the USA that we couldn't match in the last three years put together, to borrow the words of Anisul Huq, president of BGMEA.

This, we think, is the heart of the problem. Our garments exporters are chronically short of lead time. Largely import-dependent as the manufacturing processes are, due to extremely limited local value addition, it's port efficiency that holds the key to invigorating the production lines. And, when it comes to export, even a greater premium is put on the role of sea port in particular.

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A whole range of transportation, customs, cargo-handling, clearing and forwarding, and transshipment formalities need to be completed expeditiously so as to cater for the business orders in due time. Competitiveness is not all about pricing, nor even quality, although these are vital elements of the same; it has also to do, and very critically at that, with speedy delivery at the destinations.

Improvements in banking, insurance, fiscal and port services are achievable goals, but these have to be orchestrated for a maximum effect; and that's where the challenge lies.

Our loss of market to powerful competitors can be stemmed by some strategic moves taken sooner than later. The post-MFA challenge had theoretically loomed over us for a long time, and the air, too, was rife with suggestions of what needed to be done; yet here we are now caught unprepared to meet the challenge. We should move for WTO safeguards for our export vis-a-vis China's overwhelming dent in the market. This is something we need to associate the US with, but mainly we should pursue with Washington to give us duty free access to its market.