Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said that garment exports from Bangladesh to the US market have decreased by one-third. He gave this information at a press conference organized on ‘Overall Status of Garment Industry’ at BGMEA Complex in Uttara on September 26 in the capital.
In a written statement, BGMEA President Faruque Hassan said that overall apparel imports from the United States and the European Union have decreased at an alarming rate in the first seven months of this year. During this period, US global apparel import value decreased by 22.28 percent, while their import from Bangladesh decreased by about 20 percent.
On the other hand, in terms of quantity, global imports from the United States decreased by 28 percent. Where there is a decrease of 29 percent from Bangladesh. That is, in terms of quantity, the import of the United States from Bangladesh has decreased by one-third in these seven months.
At the same time, global imports from Europe decreased by 7.5 percent, and from Bangladesh decreased by about 12 percent. Also, in terms of volume, imports from the whole world decreased by about 13 percent, and from Bangladesh decreased by 14.50 percent.
The President of BGMEA said that our two main markets are the US and EU. These two markets account for about 80 percent of our total exports. If there is instability in this market, it will have an adverse effect on our industry. We have always focused on market expansion and new market creation to overcome this weakness.
We are working with many more unconventional markets, such as Australia, South Korea, Japan, China, India, Saudi Arabia and even Iraq. We held a day-long Bangladesh Apparel Summit in Australia. There we have highlighted the overall progress of our industry. Growth in exports to new markets is helping us in these difficult times, he added.
He said that the world economy is passing through an unprecedented period in recent years. The worst disaster of the century, the Russia-Ukraine war and the resulting inflation, which has yet to heal the wounds of the Covid pandemic, have had a profoundly negative impact on every sector of the global economy.
Developed countries have now adopted contractionary monetary policies to control the unprecedented global inflation. Consumers are now struggling to meet their daily needs like food and fuel while cutting back on clothing. As a result, retail sales of our products have decreased. As a result, the import of clothing in major markets has decreased, he said.
Regarding re-determining the minimum wages of workers in the garment sector this year, Faruque Hassan said that the board has been constituted, and the minimum wages board is now working for review. A new minimum wage is expected to be announced before the end of this year. As a result, our costs will increase further.
