Photo : Collected
The export of cotton trousers, a significant commodity for Bangladesh, to the USA experienced a notable decline of 31.71 percent in the period from January to November 2023.
According to data from the Office of Textiles and Apparel (OTEXA), the export value decreased from $3.19 billion to $2.18 billion during this timeframe. This downturn is attributed to the persisting challenges of inflation in the American economy, impacting the demand for this particular item in the international market.
However, USA, one of the big markets for the garment exporter globally, cut import of apparel from international market including Bangladesh.
According to the Office of Textiles and Apparel (OTEXA)USA, during Jan-Nov 2023, the USA cut import of cotton trousers by 23 percent. Of these, the USA reduced importing from Vietnam by 27.84 percent, China by 29 percent, and Pakistan by 25.49 percent.
Garment exporters in Bangladesh hold the perspective that the decline in cotton trousers' export to the USA, as indicated by the 31.71 percent decrease from January to November 2023, is primarily attributed to the global economic downturn rather than political turmoil.
Muhammad Hatem, Executive Vice President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) told the Daily Messenger, “There is no political issue in exporting garments to the USA. In fact, American economy still has been suffering from economic slowdown. The country has reduced importing garment from all the countries across the globe.”
Shahidullah Azim, vice president of (BGMEA) told the Daily Messenger, “We have a prediction that we would experience the fall in May too. In fact, we are in fluctuation in export since March last year. This time the problem hits the country severely as the stagflation has prolonged due to war,”
Mainly, “We are losing the market in those countries which are involved in war. As currently, USA is involved with the war directly, export to the market is getting worse,” he said.
According to Bangladesh garment Exporters and Manufacturers Association (BGMEA) in July-November of the 2024 FY, Bangladesh lost 5.76 percent in USA amounting $ 3.27billion from $3.48 billion.
OTEXA data shows, in Jan-Sep of 2023, Bangladesh fetched $5.77 billion, while 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 corresponding year garment export to USA market stood at $7.53 billion for Bangladesh.
In the global apparel market, various countries have experienced notable shifts in export earnings. China secured $17.74 billion, Vietnam earned $14.54 billion, Pakistan generated $2.18 billion, Indonesia amassed $4.43 billion, India gained $4.6 billion, Mexico achieved $2.39 billion, and Cambodia saw earnings of $3.51 billion.
The decline in apparel exports extends beyond specific countries and is evident in trusted destinations, including the USA, Germany, and Poland. This decline is attributed to the prolonged stagflation resulting from the Russia-Ukraine war, which has introduced economic challenges on a global scale.
Notably, during the period from July to November 2023, apparel exports to Germany saw a fall to $2.30 billion from $2.71 billion, despite Germany being the largest market for Bangladesh in the European Union. This decline is significant considering that Germany typically imports garments worth $7.16 billion annually from Bangladesh.
During July-December, Bangladesh earned $23.39 billion from the global market and grew by 2.72 percent in current fiscal year.
Messenger/Disha
