Growth in Bangladesh’s apparel exports to the United States dropped below one per cent during the first eight months of the current calendar year over the corresponding period of 2015.

The country's exports grew by 0.85 per cent while its one of the main competitors, Vietnam, posted a 3.04 per cent growth. Export earnings grew by 10.99 per cent in January and 8.52 per cent from January to February 2016.

Exports of Bangladesh’s non-apparel items, including shrimp and plastic products, also declined by 6.88 per cent.

During the same period, Chinese apparel exports to the US also witnessed a negative growth of 7.73 per cent. Readymade garment exports from India slightly maintained growth by 0.06 per cent while Cambodia’s exports declined by 14.76 per cent.

A downturn in the US demand for apparels might have slowed down the country’s imports not only from Bangladesh but also from other countries.

Orders from China are shifting to Vietnam, which has developed its strength in producing non-cotton items. Efficiency is higher in Vietnam compared to Bangladesh.

Though India, Vietnam and Bangladesh produce almost the same products, Vietnam produces some value-added products.

Bangladesh is trying for a resumption of GSP but the US is insisting on further improvements in workplace safety and the labor rights situation in the export industry.