Business leaders from Bangladesh’s apparel and textile sectors emphasised the need for fair pricing of their products by international buyers during a roundtable discussion on Due Diligence Laws, organised by the International Business Forum of Bangladesh (IBFB).
The event took place at the IBFB conference room in Dhaka.
In December, negotiators from the European Parliament and Council agreed on new rules, known as Due Diligence Laws, requiring companies to incorporate human rights and environmental impact considerations into their management systems.
This rule is applicable to both EU and non-EU companies, with a turnover exceeding € 150 million, as well as smaller companies in sectors such as textiles, agriculture, mineral resources, and construction.
The proposed law introduces a civil liability regime for damages and penalties, including naming and shaming, with fines potentially reaching up to 5 percent of net worldwide turnover.
Business leaders at the roundtable argued that international buyers consistently offer lower prices to suppliers in Bangladesh, despite the country’s significant strides in quality and compliance.
Mohammad Hatem, the executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), reportedly voiced concerns about the buyer’s market dynamic, stating that fair pricing should be incorporated into the due diligence law.
source: https://apparelresources.com/business-news/trade/bangladesh-apparel-industry-seeks-fair-pricing-garment-makers-brace-new-eu-regulations/