Photo: Messenger
Garment exports from Bangladesh to the United States of America (USA), one of the largest export destination for Bangladeshi garments, decreased significantly compared to the same period in the preceding year.
According to the Office of Textiles and Apparel (OTEXA) USA, during Jan–Sep 2023, the USA decreased its imports of garments by 22.81 percent overall compared to the last year.
Of these, imports from Vietnam decreased by 24.13 percent , China by 28.13 percent, Bangladesh by 23.33 percent, Indonesia by 25.61 percent, India by 21.91 percent, Mexico by 9.34 percent, Honduras by 23.27 percent, Cambodia by 26.09 percent, Pakistan by 29.06 percent, and Korea by 22.04 percent.
Garment exporters in Bangladesh think the decline has occurred due to global economic depression, not for any political turmoil.
Muhammad Hatem, Executive Vice President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told the Daily Messenger, “The decline of exports to the USA is not connected to any political tension; in fact, the American economy is still reeling from an economic slowdown, resulting in the country's decreasing imports of garments from all the countries.”
Will there be any sanctions over RMG by the USA in the future? Hatem answered, “We don’t think the USA will impose any sanctions over RMG goods. Currently, the world economy is uncertain, and when the world economy turns around, our relationship with the USA will be better.”
Shahidullah Azim, vice president of BGMEA, told the Daily Messenger, "We have a prediction that we will experience a decline in exports to the USA this year. In fact, the export market has been fluctuating since March. But now the problem has hit the country severely as the stagflation has prolonged due to war.”
“Mainly, we are losing the market to countries that are involved in war. Currently, the USA is directly involved in the war, and exports to the USA have gotten worse,” he added.
OTEXA data shows that in Jan–Sep 2023, Bangladesh fetched $5.77 billion, China earned $12.75 billion, Vietnam $11 billion, Pakistan $1.5 billion, Indonesia $3.30 billion, India $3.6 billion, Mexico $2.17 billion, and Cambodia $2.59 billion.
In the preceding year, Bangladesh exported $7.53 billion in RMG goods to the USA, China exported $17.74 billion, Vietnam exported $14.54 billion, Pakistan exported $2.18 billion, Indonesia exported $4.43 billion, India exported $4.6 billion, Mexico exported $2.39 billion, and Cambodia exported $3.51 billion.
According to the Bangladesh Garment Exporters and Manufacturers Association (BGMEA), in 2022–23, Bangladesh lost 5.57 percent, fetching $8.52 billion from $9 billion.
Meanwhile, during July–September, Bangladesh fetched $2.06 billion in exports of garment products and grew 2.77 percent from the USA market.
Apparel exports to the trusted destinations of the USA, Germany, and Poland have fallen significantly due to prolonged stagflation caused by the Russia-Ukraine war.
Meanwhile, Bangladesh lost 4.41 percent, amounting to $1.45 billion, from $1.51 billion during July–Sep 2023 in Germany, though Germany is the biggest market for Bangladesh in the EU. Germany imports $7.16 billion in garments from Bangladesh each year.
During July–September, Bangladesh earned $14.78 billion from the global market and grew by 5.95 percent in the current fiscal year.
Messenger/Sajib
