DHAKA: Bangladesh’s apparel exports to the US booked a double-digit growth both in terms of value and volume in 2015 year on year, despite a dispute over GSP facility. The rise in garment export has been shown in US official data, in a comparative revelation of trade position with Bangladesh’s competitors on the American market.
Industry-insiders said the prevailing stable political situation and ongoing safety drive helped in regaining the buyer confidence, resulting in such performance. Vietnam, one of Bangladesh’s main competitors, also registered a double-digit growth on the US market in the past calendar year, 2015.
Shipment of local garment products to its single-largest destination reached US$ 5.40 billion during 2015 calendar year, registering an 11.74 per cent growth over the previous year, according to the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce. The country’s apparel export to the United States fell to $4.83 billion in 2014 from $4.94 billion in 2013.
Bangladesh exported 1.86 billion square metres of apparel products, showing a 16.17 per cent growth, last year compared to that of 2014. Overall export to the US, however, stood $5.60 billion in the last calendar year, up from $5.0 billion in 2014, according to OTEXA data.
Though the garment-export earnings from the US market registered a double-digit growth, the price of locally-made apparels did not increase in line with the rising production cost, the industry people pointed out.
Earnings from apparel export to the US by Vietnam grew by 13.97 per cent to $10.56 billion while Indonesia fetched $4.93 billion on a 2.17 per cent growth. India and Sri Lanka registered a growth of 7.78 per cent and 15.82 per cent with earnings worth $ 3.36 billion and $2.03 billion respectively in the past year, the OTEXA data showed.
On the other hand, Chinese apparel exports grew 2.51 per cent to $ 30.54 billion during the January-to-December period of 2015 from $ 29.79 billion in 2014. Both in 2013 and 2014, US buyers were in a ‘wait-and-watch’ mood as they were slightly worried over the confrontational politics and the successive industrial incidents like Tazreen Fashions fire and Rana Plaza collapse, the local industry sources said.
“The ongoing safety measures taken by the industry have helped in regaining the confidence of the US buyers while the demand from that market is also increasing following its improving economy,” said Md Shahidullah Azim, a former Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leader.
Fire, electrical and structural integrity in all garment factories has been completed under three initiatives-Accord, Alliance and government-ILO joint move. The remediation work is also going on to improve the workplace safety, he said.
Though product price has not increased in line with the production cost, orders from the US buyers are on the increase, the industry leader noted.
The tragic incidents in the factories and some other sticking issues, including labour rights, led to the suspension of generalized system of preferences (GSP) facility for cut-duty apparel export of Bangladesh to the US market.
