RMG industry could benefit from dollar alternative

Kamruzzazman Bablu :

With the change in the US administration, Bangladesh’s ready-made garment (RMG) sector -the second-largest globally -could gain significant benefits, including access to the Generalized System of Preferences (GSP), amid rising tensions between the US and BRICS over alternative currencies. Industry experts are urging the interim government to take swift action, such as signing new trade treaties and addressing critical issues like power, gas, and banking reforms.

Newly elected US President Donald Trump has threatened 100 per cent tariffs on BRICS member countries if they pursue a new global trade currency or alternatives to the US dollar. In a message posted on X (formerly Twitter) on Saturday, 30 November, Trump warned, “BRICS countries’ attempts to move away from the US dollar will not be tolerated. They must commit to not creating a new currency or face 100 per cent tariffs and exclusion from the US market.”

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem highlighted that Bangladesh, as a non-BRICS nation, could seize this opportunity. However, he emphasised the urgent need for stability in gas, power, and banking sectors to maximise the benefits. “If the US imposes 100 per cent tariffs on BRICS countries, Bangladesh must position itself to gain preferential trade agreements with the US, one of our largest apparel markets,” Hatem told The New Nation on Monday.

Hatem added, “Being the world’s largest consumer of US cotton, Bangladesh should negotiate to secure more GSP facilities. But to fully benefit, we must reform our banking sector, stabilise power and gas supplies, and address issues with the National Board of Revenue (NBR), while enforcing law and order.”