With leading western destinations shifting their sourcing to other countries, garment exporters from Bangladesh are moving their shipments to new destinations. Data shows that while the exports to traditional markets saw a decline, shipments to new destinations witnessed a sharp increase.

Apparel exports to new destinations, all markets except the EU, the US and Canada, for instance increased 15.47 per cent year-on-year to $1.87 billion in the first six months from July-December of the current fiscal year, according to Export Promotion Bureau. The major new export destinations that have emerged strong include Australia, Brazil, Chile, China, India, Japan, South Korea, Mexico, Russia, South Africa and Turkey.

During the six-month period, Bangladesh's garment exports to the US declined 5.18 percent, to EU 3.53 percent, and to Canada 14.60 percent. However, garment exports to non-traditional markets were encouraged by the government’s incentive package to businesses during the fiscal year 2008-09. Under the scheme, the government gave 5 per cent cash incentive to garment exporters in fiscal 2009-10, 4 percent in fiscal 2010-11 and 2 percent in fiscal 2011-12. The exporters continue to receive 2 percent cash incentive for exporting to the new destinations.

According to the Export Promotion Bureau, Usually Bangladesh's 60 per cent apparel products are exported to the EU, 23 per cent to the US, 6 percent to Canada and the rest to other countries.

www.epb.gov.bd