The country’s export of Readymade Garments to foremost destinations shows upward trend in the ongoing year, keeping past few years’ nightmarish experiences behind. The USA, the single largest export destination of Bangladeshi RMG products, is showing hope for upcoming days as the country’s export is gradually growing since last year.
According to OTEXA, an US based textile’s trade information site, Bangladesh could register 6.65 percent year-on-year growth in 2018.
However, the country’s export growth jumped to 13.91 percent in the first four months (January-April) of the current calendar year.
During this period, Bangladeshi RMG exporters shipped products to USA worth $423 crore, data says.
The USA, in January-April tenure, imported RMG products worth a total of $2229 crore, up 6 percent on a year-on-year basis. As an impact of US-China trade war, the RMG shipment of Bangladesh, Vietnam, and India to USA surged by 13.91 percent, 12.88 percent, and 10.76 percent respectively in the first four months of the year. However, the export growth of China, the largest exporter to USA was only 0.3 percent in the same period.
After Rana Plaza accident in 2013, Bangladesh’s RMG export to USA went down significantly and the trend continued next few years. However, RMG export to this destination started to go up since last year. As an effect of US-China trade war since last quarter of 2018, most of US buyers and brands to avert higher duty, turned away from China and started finding alternative sources.
To this effect, many US RMG importers found Bangladesh as a better country to buy their products that reflected on the US-Bangladesh trade data of last year. Besides, the RMG trade between the two countries magnified in the first quarter of the ongoing calendar year. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders said there is huge potential to amplify the export to USA in the forthcoming years and they sought government incentive to make it happen.
BGMEA leaders at a press conference held few days ago urged the government to provide 5 percent cash incentive to the RMG exporters for the sector’s development. “Huge shipment orders are now coming from USA, but due to financial obstacles the country’s traders could receive low-price shipment orders only. If the government provides cash incentive, the exporters would be able to receive high-priced shipment orders also,” they said.
According to OTEXA data, the share of Bangladesh in RMG export to USA is also increasing followed by the increased number of shipments in recent times. In 2018, Bangladesh covered 6.52 percent of total RMG shipments to USA, but only in the first four months of the current year, the country’s share increased to 6.61 percent.
China covers the highest amount of RMG shipments to USA, and the country shipped products to this destination worth $2737 crore last year, securing 1.34 percent year-on-year growth. But the country could export RMG products to USA worth $724 crore, having a growth of 0.3 percent in comparison with same period last year. Bangladesh is the 3rd country in terms of exporting RMG goods to USA.
