The country’s export earnings witnessed rapid growth in the US market due to strong dollar rate against Taka, quality products and the government time-befitting support. Economists said, US buyers are slowly switching to Bangladesh as the country is shifting towards making high-value products. They urged the government to ensure business-friendly environment by improving ease of doing business.
Besides, the country needs some fiscal support including reducing time frame to discharge export items from ports as well as improving communication systems which can help boost the export flow further, they added. However, the country’s export earnings have increased by almost 17 percent to 5.16 billion in the last nine months of current fiscal 2019 over that in the same period of the previous fiscal, according to Export Promotion Bureau (EPB) latest data.
On the other hand, the country’s merchandise export to the United States increased only 2.33 percent in the past fiscal, 2017-18. The export to the US stood at $5.98 billion in FY18, which was 136.67 million higher over the $5.84 billion in FY17. Annual export to the US reached the highest ever level in FY16, when it fetched $6.22 billion. US Ambassador to Bangladesh, Earl R. Miller said, the trade relation between the US and Bangladesh is very well.
“We want that Bangladesh recover its Generalized System of Preferences (GSP) facility successfully,” he said adding , “The US wants exercise to be made in respect of 16-point action plans that we presented in 2013.” Commerce Minister, Tipu Munshi said, “We have placed to the US to ensure proper prices of Bangladeshi readymade garment (RMG) products in its market.”
The government is providing time-befitting supports to increase export earnings, he said adding that, “Bangladesh is a good place for investments as an investment-friendly environment has been created by the government. To reduce the time frame to export, he said 100 special economic zones (SEZs) are also being built in the country, and side by side, we will improve ease of doing business to ensure higher export earnings.
BGMEA president Siddiqur Rahman told Bangladesh Post, “The export earnings have maintained a positive growth in recent times in United States, as Bangladesh was shifting towards making high-value products, which was building interest in US buyers to order more from Bangladesh.” He said, Bangladesh is now in the top position among the top performing environment-friendly readymade garment (RMG) industries across the world, thus rebuilding buyers’ confidence to invest more in the RMG sector.
Abdus Salam Murshedy, president of Exporters Association of Bangladesh (EAB), told Bangladesh Post that export earnings from the US have gradually increased, which is good news for Bangladesh. He noted that the country is now capable of making the best quality products at low prices, which will help enhance export earnings in the US market.
He said, the popular clothing retailers and brands in the US are already trying to move away from China to other destinations like Bangladesh, as cost of production in China is too high. They urged the authorities saying “they have to get ready by expanding our capacity. There is a chance to gain from the trade war.”
Murshedy said the government should act promptly to reduce trade barriers with different countries to increase export earnings further. World Bank lead economist, Zahid Hussain, said that the Bangladesh economy is growing faster on the back of export, remittance and agriculture. He urged the authorities to diversify products and markets to avoid uncertain risk, in order to maintain sustainable economic growth.