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EU brings forward ‘Due Diligence Law’ for garment exports

by Afonso
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Bangladesh manufactures world-class clothes even though the raw materials of the clothing sector are imported. And the big market for this garment export is North America and European Union countries.

EU ambassador in Dhaka Charles Whiteley has warned that European buyers may be forced to break up with the factory through fines or sanctions if the rules passed by the European Parliament on labor rights and environmental protection (due diligence) are not properly observed in export-oriented factories.

His warning came at a seminar organized by International Business Forum of Bangladesh (IBFB) on EU’s ‘Due Diligence Law’ in Dhaka on Tuesday.

According to the ‘Due Diligence Law’, the cost that will increase in compliance with the rules, they urged to ensure the fair price of the product. The EU ambassador mentioned the failure of the traders as they could not bargain for the clothes.

Whiteley said due diligence is not just a buyer-seller issue; This is done for the benefit of everyone involved in the supply chain. These rules cover issues such as child labour, forced labour, slavery, deforestation, environmental pollution, damage to ecosystems and human rights.

At this time, the western buyers made a new law, even if they talked about compliance, they cheated on the price, the ready-made clothing traders also complained. In the negotiations, they demanded a fair price for the clothes.

Garment traders complain that foreign buyers have not increased the price of clothes even though the wages of workers have increased. Products bought from Bangladesh for less than 2 dollars are sold in Europe for 20 dollars. Even though western countries have new laws and policies, clothing manufacturers cheat on prices.

BGMEA is looking for product diversification and new markets to increase exports. President of the organization Farooq Hasan said that half of the world’s top 100 green factories are in Bangladesh.

Various European countries have enacted new laws to ensure environmental and human rights issues. Responding to complaints about low prices for clothing, EU ambassador Charles Whiteley blamed the failure on traders.

Several European countries have enacted ‘due diligence’ legislation to ensure that environmental and human rights issues are properly respected from production to marketing. Failure of merchants to negotiate with buyers. One cannot expect charity here.

Domestic producers are also accused of forcing western buyers to sell clothes at low prices.



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