The German Ambassador in Bangladesh Achim Tröster has suggested Bangladeshi exporters to be prepared to face the new German Supply Chain Act, which will come into force from January, 2023, mentioning that it will primarily focus on human rights issues, but also includes environmental considerations.
Citing that the Germany is the largest trading partner of Bangladesh in Europe and the second largest globally, the envoy informed that readymade garment exports to Germany stood at $5.95 billion US dollars in FY21 as against $6.97 billion from the US market.
On June 11 last year, the German parliament passed the Supply Chain Due Diligence Act also known as the Supply Chain Act. Bangladesh must ensure human rights; rule of law, sound labour and environment standards, as well as to enjoy trade privileges in the Germany market.
The Ambassador expressed this while addressing an event on National Budget 2022- Implications on Trade & Commerce on Wednesday in Dhaka, organized by the BGCCI.
German Ambassador in Bangladesh Achim Tröster and Md. Mosharraf Hossain Bhuiyan, Bangladesh Ambassador in Germany as guests of honor.
The Keynote speaker was M. Humayun Kabir FCA, CEO, Shinepukur Ceramics and Director, BGCCI .
Ibnul Wara, MD of Austan Ltd. and Saad Nusrat Khan, MD of Audi Bangladesh stressed on the tax benefits to leather exporters and to promote electric cars for future generations.
Tarun Patwary, Sr. VP and Muin Uddin Mazumder, Sr. VP of BGCCI gave the welcome remarks and Vote of Thanks respectively.
BGCCI Executive Advisor & CEO Shahed Akhtar was the event chair.
The German Ambassador to Bangladesh Achim Tröster referred to the inflation rate in Germany has hit a 50-year high of 8.00 per cent, according to new figures from the Federal Statistical Office. Prices of goods and services rise once again.
“Bilateral trade between Germany and Bangladesh amounts to over $7 billion, with Germany importing over $6 billion worth products, mostly textile. It is Bangladesh's second largest export market after US. In 2020, Germany imported $6.53 billion and exported only $588 million worth of goods. With the forecasted continued growth and prosperity in Bangladesh, we very much hope that the imports from Germany to Bangladesh will significantly rise in the next years,” said Achim Tröster.
Bangladesh will be a middle-income country and is likely to experience several challenges including high tariffs in the EU markets. Bangladeshi exporters may also get trade privileges including GSP+ up to 2029 in Germany, provided Bangladeshi exporters ensure human rights, rule of law, sound labour and environment standards and good governance.
Achim Tröster said: “To expand German-Bangladesh bilateral trade in future, new export sectors need to be harnessed keeping in mind the environment and labour-friendly production."
Md. Mosharraf Hossain Bhuiyan, Bangladesh Ambassador in Germany, while speaking, said that he has proposed to the stakeholders of Germany and Bangladesh to set up an international standard training institute in Bangladesh to groom Bangladeshi nationals.
Mosharraf Hossain Bhuiyan, also a former chairman of the National Board of Revenue (NBR), said properly trained and groomed Bangladeshis can meet a certain portion of labour requirement in the German market.
