Bangladesh’s leather and leather products exports increased by 1.32 per cent in July to August of the current financial year. Exports of leather and leather goods from Bangladesh rebounded after more than two years due to higher shipments to non-traditional markets. Traditional markets are South Korea, China, European Union, US and Canada. Non-traditional ones are South Africa, India, Australia, Spain, Japan and Singapore. Moreover, the value addition to leather products was another reason behind the positive export trend. Work orders are expected to further increase after a certification is attained from the global rights body Labor Working Group. The LWG certification is awarded to companies based on points awarded for factors such as treatment and less use of water, solid waste management, chemical use and labor welfare.

The leather industry in Bangladesh has been struggling due to lack of new investment, lack of product variety, artificial leather penetration, and price hike of leather products. The US-China trade war is also blamed for the slump. China used to import raw hide and process it further to make raw material. Since the US imposed a 25 per cent tariff on a Chinese products entering the US market, including leather, China has stopped taking raw hide from Bangladesh.