Exports of readymade garments from Bangladesh fell 7.7 per cent in the five months to November. Exports of knitwear dropped 6.7 per cent while woven garment exports fell 8.7 per cent in comparison to the same period last year.
Bangladesh is the world’s second largest clothing exporter. More than six per cent of world apparel exports originate from Bangladesh. The European Union is the largest customer of the fashion industry in Bangladesh. However, Bangladesh is expected to slow its fashion exports to Europe. In parallel, the Asian country is expected to enter the list of less developed regions in 2024, which will entail endangering the tariff benefits established with the European Union, Canada and Japan, among others. Bangladesh will give garment, terry towel and specialised textile exporters a one per cent special incentive. The aim is to help exporters remain competitive in the global market. Currently, Bangladesh garment exporters receive a four per cent cash incentive for shipment to non-traditional markets. The country considers all destinations as non-traditional markets except the EU, the US and Canada.
Bangladesh’s garment exports have been declining for the last five months because of the appreciation of the currency, the rising cost of production, the declining trend of spending by consumers for garment items and the free trade agreement between Vietnam and the EU.