They also urged the European Commission (EC) to relax the rules of origin (RoO), which they believe would create new opportunities for the least developed countries (LDCs).

They further called upon the government to take a positive decision on the regional cumulation to help the country's readymade garment sector become more competitive in the quota-free era.

The roundtable on 'New GSP: Impact on EU-Bangladesh Trade' was organised by the International Chamber of Commerce-Bangladesh (ICC-B) in Dhaka.

Speaking at the discussion, ICC-B President Mahbubur Rahman said due to lack of product diversification and tough RoO, it was not possible for the LDCs to reap as much benefit as the developing countries do from the duty- and quota-free market access facility.

The new EU GSP (Generalised System Preference), together with a simple and relaxed rule, appears to open an important window of opportunities for LDCs like Bangladesh, he hoped.

He said an offer of market access needs to be complemented by policy support from the government as well as by fresh initiatives from the entrepreneurs. "The entrepreneurs will have to build up their capacity while the government at the same time should provide necessary infrastructure including modern port, uninterrupted power supply and improved communication systems. Besides, economic development-oriented political atmosphere as well as appropriate tariff structure are also necessary to help Bangladeshi companies compete with the rest of the world."

President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Mir Nasir Hossain said: "Unless we diversify our export items, whatever facilities are given to us, we cannot change the scenario."

Anthony Goodwin, chargé d'affaires of EC delegation, said the EU's GSP and more particularly, its 'everything but arms' (EBA) scheme is not just a labyrinth of technical rules for governing the EU's trading relations, it is also a pivotal plank in their efforts to promote development and the integration of developing countries into the global marketplace.

About relaxation of RoO, he said the EC is examining the RoO, governing its GSP with a view to simplifying them and making them more development friendly.

Commenting on the recent WTO Ministerial in Hong Kong, he said, "The EC pushed strongly at the ministerial conference for developed countries -- notably the US -- to extend the same duty- and quota-free market access for all the products from the LDCs, as has been granted by the EU under the EBA scheme since 2001."

President of Bangladesh Knitwear Manufacturers and Exporters Association Fazlul Haque, however, said the knitwear exporters are in a dilemma whether they should go for the simplified RoO or not.

"If we are satisfied with the current situation then why we should change the position?" he questioned. With the present RoO structure, which is favouring the knit sector of the country, 81 percent knit products get GSP facilities from the EU, he said.

He, however, felt some sorts of relaxed RoO are needed for the woven sector, which is struggling to gear up its export to the EU market after the quota phaseout early last year.

Annisul Huq, immediate past president of Bangladesh Garment Manufacturers and Exporters Association, said the government should make decision immediately on regional cumulation offered by the EU.

Presenting a keynote paper on 'EU Scheme of Generalised System of Preferences' Charles Whiteley, first secretary of the EU, said the EBA scheme, an exclusive arrangement for LDCs, continues to apply for the world's 50 LDCs and all products except arms and ammunitions are covered and they can access the EU market duty- and quota-free for an indefinite period.

He said the new EU GSP features maintaining the generous tariff rates, targeting the GSP in the countries that most need it, simplifying GSP with easier access, devising new incentives to encourage sustainable development and good governance and improving RoO.

Presenting another keynote paper on 'New EU GSP: Bangladesh Perspective' Zillul Hye Razi, EU trade officer, said under EBA Bangladesh also continues to enjoy duty-free access for indefinite period while the old RoO remain valid and preference or duty exemption remains as before.