After a decline in the previous two fiscals, Bangladesh exported RMG products worth over $1 billion to Japan FY2021-22. Bangladesh’s RMG exports surged 16 percent to $1.098 billion in FY22, shows data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). In FY2020-21, Bangladesh exported RMG products worth $944.82 million. Its RMG exports first crossed billion dollars with $1.091-billion earnings in FY19.
Local exporters highlight issues including buyers’ zero-tolerance policy on quality, timely shipment, and language as obstacles to exporting apparel items to Japan.
Fazlee Shamim Ehsan, Vice-President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) says, exports to Japan also declined due to the pandemic. He urges for an exclusive marketing policy there to boost exports. According to a recent UNCTAD report, preferential access to Japan for duty-free treatment of T&C (textile and clothing) products for the targeted LDCs largely depends on their membership to the Association of South East Asian Nations (ASEAN).
Bangladesh and Nepal will be subject to the GSP or MFN (most favored nation) rate in their exports to Japan as they are not part of ASEAN and therefore, do not benefit from the ASEAN-Japan Comprehensive Economic Partnership Agreement (CEPA), it notes.
In this context, they will face tariffs on their exports ranging from 8.5-9.0 percent. Ehsan urges the government to start lobbying for Bangladesh to enjoy the existing duty benefit even after its graduation. He also advises entrepreneurs to focus more on increasing efficiency, product diversification and reducing wastage to retain competitiveness during the post-LDC period.
