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US retailer's sanctions spark concerns among Bangladesh garment factories


The decision by a US clothing retailer to reject transactions involving any entities sanctioned by the UN, US, or UK has raised concerns among garment factory owners in Bangladesh. The Bangladeshi mission in Washington has alerted the Commerce Ministry about the potential risk of trade sanctions being imposed on Bangladesh due to labor rights issues.

Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), has emphasized the critical nature of this issue. He urged BGMEA members who receive Letters of Credit (LC) with such clauses to seek clarification from retailers, specifically inquiring whether the restriction applies only to Bangladeshi suppliers. Hassan suggested that buyers imposing such restrictions should face business bans, but also advised members not to interpret the inclusion of such clauses by a single retailer as a form of sanction. BGMEA has not received any official information from diplomatic missions regarding this matter, according to Hassan.



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