Tuesday, February 05, 2008
DHAKA: Bangladesh뭩 textile industry will be badly hit by major garment importers refusing to buy products made with cotton from Uzbekistan, business leaders said on Monday.

From July, several European and US firms will not buy Bangladeshi garments if they are made with cotton from Uzbekistan, due to allegations of child labour in the industry. Bangladesh procures 65 per cent of its total annual demand of 2.7 million bales of cotton from Uzbekistan, the world뭩 third-largest cotton exporter, officials said.

It also imports cotton from India, Pakistan, Turkmenistan and the United States. Retailers Tesco, Hennes & Mauritz and Marks and Spencer have already conveyed the decision to Bangladesh, said Anwar-ul-Alam Chowdhury Parvez, president of the Bangladesh Garment Manufacturers and Exporters Association.

밯e will sit with them shortly to sort out the complications as these three firms alone buy at least $700 million worth of garment products,?Parvez told Reuters on Monday. Readymade garments are Bangladesh뭩 main export, totalling $9.21 billion, or 75 per cent, of Bangladesh뭩 annual export income in the fiscal year to June 2007.

Bangladesh enjoys duty free access in European countries and is trying to gain similar access in the United States, the single largest buyer of Bangladeshi garment products. 밪uch a decision (about products made with Uzbek cotton) would force us to import cotton at high price from other sources,?one businessman said.

Mohammad Fazlul Huq, president of Bangladesh Knitwear Manufacturers and Exporters Association, said the decision would make the country뭩 garment exporters globally uncompetitive.

Nasriddin Najimov, the Uzbek deputy minister for foreign economic relations, investments and trade, in a letter to Bangladeshi authorities said that the allegation was a 밹onspiracy and mere rumour.?Najimov said child labour was prohibited under Uzbek law which allows employment from 16 years of age.