The new committee of Bangladesh garment Manufacturers and Exporters Association has undertaken a gigantic task of developing a unified code of conduct, recognizing that multiple social compliance audits not only incur substantial costs in terms of both time and money for apparel exporters but also contribute to audit fatigue, thereby complicating compliance for enterprises.

Suppliers are required to furnish not only information about their operations but also invest time, money, and disrupt their production processes during audits for data verification.

Audits are frequently conducted multiple times a year, often by the same auditors collecting redundant data.

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Abdullah Hil Rakib, vice-president of BGMEA said that the the apparel apex body has started working in this connection to develop a universally accepted code across the industry.

He stated that the trade body has launched a series of discussion programs with related stakeholders, including the International Labour Organization (ILO), to expand the ILO-led Better Work program across the industry.

‘But everything has a cost—cost of production, maintenance, and also basic code of conduct,’ Rakib said, adding that they want the ILO to come up with an approach that considers the calculation of the minimum cost and minimum price of a product.

Once customers adhere to and agree on the basic cost of the code of conduct, the minimum price will follow, he believed, adding that they also want to develop a mechanism through which banks would not finance the letter of credit where prices are quoted below the cost of production.

He said that it might take time but could be achievable through continuous discussions.

Speaking about export earnings and the current market situation, the BGMEA leader said that both exports and prices of locally made readymade garments have declined in the United States’ market.

‘There was a reflection of long Eid holidays, and the US market is not settled,” he said, adding that there were disruptions in other traditional markets too.

He said they are working to further develop relationships with progressive markets like China, India, Korea, and Japan.

The new board is working to drive value-based business as Bangladesh is currently engaged in volume-based exports.

The sector needs to develop its capacity towards value-added and man-made fiber-based garment items manufacturing, along with the existing capacity of basic items and cotton-based garments.

The government needs to provide policy support in this regard, he said, adding that additional $20 billion in export earnings could be possible by 2030.

The government should not phase out the incentive supports for the WTO, he said, as India, despite its graduation in 2007, has been providing incentives in various forms, including incentives on capital machinery, labor costs, and increasing the repayment time for bank loans.

These supports will be helpful to achieve the government’s target of being a developed nation by 2041, as the sector with $100 billion in export earnings by 2030 would also create employment, he explained.

Speaking about the EU market, Rakib said they are working towards the path to get GSP plus and meet the EU newly passed due diligence rules.

There is a revaluation in green factories as their connectivity aligns with the graduation process.

He, however, urged the government to strengthen the Geneva mission by compiling research-based data so that it can showcase the good stories of the sector that have already aligned with graduation.

‘If we can convince the EU Commission and EU parliament about our positive intention aligning with its legislatives and can get an extension of existing duty benefit,’ he added.