RMG Exports To The US And European Markets Decreasing

Bangladesh's overall apparel exports to North America and the European Union, two of Bangladesh's main markets, have declined at an alarming rate. In the first 7 months of this year, Bangladesh's clothing exports to the US market decreased by one-third and to the European market by 14.5 percent. About 80 percent of the country's total exports go to these two markets.

If there is instability in these two markets for any reason, it will have an adverse effect on the garment industry of Bangladesh. Garment Manufacturers and Exporters Association (BGMEA) President Farooq Hasan said this in a press conference organized at BGMEA Complex in Uttara on Tuesday regarding the ongoing situation of the garment sector.

Farooq Hasan said about the decrease in clothing exports to the two main markets of Bangladesh - the United States and Europe, that the overall clothing imports from the United States and the European Union have decreased at an alarming rate in the first 7 months of this year. During this period, US global apparel imports fell by 22.28 percent in value, while their imports from Bangladesh fell by nearly 20 percent.

On the other hand, in terms of quantity, the global import of the United States has decreased by 28 percent, while it has decreased by 29 percent from Bangladesh. That is, in terms of quantity, the import of United States from Bangladesh has decreased by one-third in these 7 months.

During the same period, global imports from Europe fell by 7.5 percent and imports from Bangladesh fell by about 12 percent. Also volume-wise, imports from the entire world fell by around 13 percent and from Bangladesh by 14.50 percent.

According to the organization, Bangladesh's two main markets - North America and Europe - account for about 80 percent of the country's total exports.

If there is instability in these two markets for any reason, it will have an adverse effect on the garment industry of Bangladesh. However, BGMEA is working to increase exports to new markets, he said. Farooq Hasan said that the increase in fuel prices and inflation in the country is increasing the cost of production in the garment sector.

Mentioning that the garment industry of Bangladesh is also under pressure amid the global crisis, he said that the garment industry will be under more pressure if the minimum wage board and new wages are implemented this year.