The country’s apparel exports to some potential non-traditional markets declined considerably during the first half (H1) of the current fiscal year (FY), 2015-16, despite posting an 8.13 per cent growth to all the new markets during the corresponding period of last fiscal. Exporters attributed the decline to lack of continuous efforts to sustain export growth to such markets. Besides, import from Bangladesh has become costlier due to the local currency (BDT) maintaining strong position against the US dollar and depreciation of currencies in the importing countries, they added. Exports to Brazil and Turkey dropped by 24.25 per cent and 6.47 per cent respectively. Shipments to China, Japan and Russia recorded a slow growth of 0.40 per cent, 3.99 per cent and 2.16 per cent respectively. However, the total export of ready-made garment (RMG) products to the new markets grew by 8.13 per cent with earnings worth $2.01 billion during the July-December period of the FY ’16. Bangladesh’s exports to the new destinations witnessed more than 20 per cent growth from FY 2011-12 to FY 2013-14, according to official data of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The new emerging markets are — Australia, Brazil, Chile, China, India, Japan, Korea, Mexico, Russia, South Africa and Turkey. They are beyond the traditional export destinations — the US, Europe and Canada, which buy more than 80 per cent of Bangladesh’s RMG products. Knit products export to Brazil, China, Russia and Turkey fell drastically by 36.79 per cent, 16.95 per cent, 8.21 per cent and 4.85 per cent respectively during the first half of the current fiscal compared to that of the corresponding period of last fiscal, data revealed. Similarly, woven products export to Brazil also witnessed a 6.22 per cent decline, 0.18 per cent to India, 5.16 per cent to Japan and 7.10 per cent to Turkey during H1 of FY 16. Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said: “There have not been sustained efforts, both from the government and the businesses, for exploring the non-traditional markets.” Moreover, work orders for apparel products are now witnessing a declining trend globally, affecting exports to new destinations, as Bangladesh is not the prime sourcing country for them, he opined. Faruque Hassan, senior vice president of BGMEA, attributed currency devaluation against the US dollar in the importing countries for the declining trend in some markets and slow growth in other new markets. Some problems, like – high duty, third-party sourcing from Bangladesh to Russia, and lack of visa processing facility for the Latin American countries, are hindering the exploration of new export destinations. Local RMG exporters need support from the government to overcome these hurdles, the exporters said. To grab the new markets, government-to-government negotiation is a must. The government should strengthen commercial wings of the foreign missions in the new markets to help maintain the higher export growth, they also said. RMG manufacturers had started diversifying the markets in the face of falling demand for local items during the 2007-2008 global recession. The cash incentives, offered to the exporters by the government, also encouraged them to explore the new destinations, they added, demanding continuation of the stimulus in the coming years.
