In 2016-17, Bangladesh's home textiles exports increased 6.13 per cent year-on-year. The country could have had a bigger share of the European home textile market if the exchange rate between the euro and the dollar were more favorable. Despite having a huge potential in home textiles, Bangladesh is unable to expand its market share in the European Union because of duty benefits extended to Pakistan, a cotton grower. Bangladesh, on the other hand, is a 100 per cent cotton importer.

All four major home textiles exporters -- China, Pakistan, Turkey and India -- have their own cotton. In December 2013, the 28-nation bloc granted Pakistan GSP Plus status for four years. The GSP Plus status allows 20 per cent of Pakistani exports, including home textiles, to enter the EU at zero duty and 70 per cent at preferential rates.

Bangladesh has been competing with Pakistan in the same market in the same product category, so it is difficult to perform better. Currently Bangladesh has only five major home textile makers and exporters. There are some small ones whose volume is still low. In 2016, of the EU’s home textile imports, China accounted for 33 per cent, Pakistan 25 per cent, Turkey 16 per cent and India 11 per cent. But Bangladesh’s share was seven to eight per cent.