Bangladesh’s apparel export to US market has seen an 11.74% rise to $5.40 billion in the last calendar year, thanks to increased demand for clothing products. The volume, however, posted a 16.3% growth in the same period that indicates the unit prices of apparel products made in Bangladesh has seen a fall. In 2015, Bangladesh, the third largest exporter of clothing products to US, earned $5.40 billion, which was $4.83 billion in the previous year, according to the data recently released by OTEXA. While export growth in terms of quantity rose by 16.30% to 2196.4 million square meters equivalent (SME), it was 1888.2million SME a year ago. Meanwhile, the overall export to US market jumped to $5.60 billion with an 11.93% rise compared to $5 billion in the same period a year ago. Export of non-apparel products also showed a robust growth by 17.44% to $200.63 million, which was $170.8 million a year ago. After the suspension of GSP or Generalized System of Preferences, it was feared that export to the US market, the single largest export destination of Bangladeshi products, especially apparel items, will see a sharp decline, but resulted in better growth instead last year. “Despite image crisis over safety issues and economic slowdown in the export destination, an 11.74% growth is a satisfactory one,” BGMEA senior Vice-President Faruque Hassan told the Dhaka Tribune. But the 16.3% growth in terms of quantity means that the buyers have cut prices, a great concern for the sector people as the production cost has increased manifold due to safety upgradation, said Hassan. Talking on the higher growth of volume, Hassan said the buyers cut unit prices as yarn price fell while the retailers took advantage of safety issues. “We are urging the buyers to increase the prices but they do not pay heed.” “After GSP suspension, it was apprehended that the export to US market will see fall, but it showed significant growth, Former finance adviser to the caretaker government AB Mirza Azizul Islam told the Dhaka Tribune. The higher growth in quantity implies a fall in unit price, leading the manufacturers to negotiate with their buyers to increase unit prices, said Azizul. The positive sign is that there is a huge demand for Bangladeshi RMG products in the US market as the volume posted substantial growth, he added. According Otexa, in the last calendar year, the United States imported clothing products worth $85.16 billion from across the globe, of which Bangladesh’s share is 6.34% while China shares 35.86% and Vietnam 12.40% in terms of value.
