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The United States (EU) and the European Union (EU) are the two main export destinations of Bangladeshi readymade garment (RMG) products. The demand for RMG products has declined in the US and the EU due to high inflation and economic turmoil. As a result, exports of Bangladeshi RMG products decreased in these two popular destinations.
According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the RMG export has declined in the main markets in the first 10 months of 2023. The import in the US has declined 22.71 per cent based on dollar value during the same period. It decreased by 23.80 per cent based on RMG volume. The import in the US from Bangladesh has declined 24.75 per cent which is 29.51 per cent based on volume.
The imports in the EU from all over the globe have declined 13.14 per cent based on dollar value and 17.32 per cent based on RMG volume during the same period. At the same time, the import in the EU from Bangladesh has declined 17.32 per cent which is 17.13 per cent based on RMG volume.
Data from the Office of Textiles and Apparel (OTEXA) of the United States, revealed that the import of overall RMG products in the US declined 22.71 per cent and stood at $67.26 billion from January to October last year.
Bangladeshi RMG export in the US stood at 1.95 billion square meters declining 29.51 per cent which was 2.41 billion square meters during of the same period of the previous year.
Meanwhile, the position of Bangladesh as the third largest RMG importer in the US market has remained unchanged despite the decline in the export volume.
RMG concerned said Bangladeshi RMG exports decreased in the US due to ongoing high inflation and stock of old clothes at the retail and brand shops. Businessmen in the US had imported a large volume of RMG products to recover from the loss of the COVID-19 period. However, the sale of RMG products has not increased due to high inflation because of the Russian invasion of Ukraine.
BGMEA Vice President Shahidullah Azim said, “The export of our RMG products declined in the US and the EU market due to the global economic crisis. The export trend is slightly slow now. I hope RMG export in these two destinations will increase in the new year and the situation will be improved.
We are working on two strategies to boost RMG exports. The first is product diversity and the second is market diversity. We are focusing on these two sides. Besides, we are focusing on unfamiliar markets. We are in a good position in the Asian market. Our RMG export in the Australian market is increasing alongside China, Japan, Korea, and Arab countries.”
@ The article was published on print and online versions of The Bangladesh Pratidin on January 2, 2024 and has been rewritten in English by Golam Rosul
