Bangladesh garment exports to non-traditional market has soared by 36.21percent in the first six months of the current fiscal 2018-19 compared with the six month of the previous fiscal year. Export earning stood at $ 2.90 billion during this period to new markets compared to $2.13 billion at the same time during last fiscal, Export Promotion Bureau (EPB) data said. The country’s overall export rose by 8.76 percent to $ 30.61 billion last year while the pace of growth further rose to 15.65 percent or at $ 17.08 billion in first six month of the current fiscal, according to EPB data. Export to non-traditional market phenomenally increased in recent time mainly riding on duty free entry of Bangladesh garment to a host of countries not were on the list of major export destinations in one hand and boosted by financial export incentives on the other. Meanwhile export to traditional market like the USA, EU, Canada and others significantly grew after a slow down mainly in recent years for recession at buyers end and recent trade war between UNA and China encouraged many buyers to switch their import orders to Bangladesh. EPB data showed export to newly growing markets like Australia, Brazil, Chile, China, India, Japan, South Korea, Mexico, Russia, South Africa and Turkey are showing stronger recently taking advantage of up to 5 percent export incentives. Garment export to non-traditional markets is growing since 2010-11 when the government announced a 5 percent cash incentive as a stimulus package to offset fallouts of financial recessions that affected the global economy in 2007 and 2008.Since 2010-11, apparel shipments to new destinations grew rapidly. Exports to those countries initially varied from $200 million to $500 million before the stimulus package but it shot up to $1.00 billion quickly to Japan banking on the stimulus. The stimulus fell and rise in the meantime but it remained a basic encouraging factor to push export to non-traditional markets, BGMEA president Siddiqur Rahman said. Japan extends duty-free trade privilege to garments imported from least developed countries including Bangladesh to reduce over-dependence on China when China is also relocating garment industry to Bangladesh and turning to become a growing importer of Bangladesh garment for low cost.The Chinese government is also offering duty-free access to most Bangladesh products including garments. Country’s export shipments are showing the continued rising trend in recent time, BGMEA president Rahman said.
