Bangladesh earned US Dollar 124.73 billion by exporting readymade garments over the last six and a half years, Commerce Minister Tofail Ahmed said in the parliament Tuesday, reports BSS. “Bangladesh earned US Dollar 124.73 billion by exporting readymade garments to140 countries of the world from January, 2008-2009 to May, 2014-2015,” he said in reply to a question raised by treasury bench member DidarulAlam (Chittagong-4). Responding to another question raised by ruling party lawmaker EnamulHaque (Rajshahi-4), the commerce minister said the government has taken various plans to reduce Bangladesh’s trade gap with India, China and Pakistan. Mr Ahmed said India allowed duty-free access of all Bangladeshi products except tobacco and narcotics products from November 9, 2011 following the steps of the Bangladesh government to boost trade with India. He said the efforts for removing duty and non-duty barriers through discussion at different time and levels are underway. “Steps have been undertaken to get duty-free access of a huge number of goods from other SAARC countries under the South Asian Free Trade Area (SAFTA),” he said. The commerce minister said Bangladesh is participating regularly in the international trade fairs in Guwahati, Kolkata, New Delhi, Shilchar, Mumbai, Ranchi and Bhubaneswar in India to familiarise the Bangladeshi products. “This trend would continue in future,” he said. Mr Ahmed said Bangladesh is also participating regularly in the international trade fairs in China and other SAARC countries to raise export,familiarise products and expand market. “We are also continuing bilateral and multilateral discussion with different countries to develop our trade ties,” he said. Besides, he said, measures have been taken to increase Bangladesh’s trade contact with the businessmen of China, India and Pakistan. Meanwhile , Commerce Minister Tofail Ahmed Tuesday said in the House the state run Trading Corporation of Bangladesh (TCB) has been selling essential products by 174 open mobile trucks at fair prices across the country. “The TCB would continue selling of various products at fair prices till July 16, 2016,” he said, while replying to a question from treasury bench member Mohammad Iliyas of Cox’s Bazar in the House. The minister said the TCB’s appointed dealers have been selling essential products by open mobile trucks in Dhaka, Chittagong, 5 divisional towns and 57 districts across the country. Besides, the government has appointed 2,879 dealers and recruited 50 manpower for smooth activities of the corporation aimed at strengthening the TCB,Tofail added. He said the ministry has also undertaken initiatives to establish zonal offices in Faridpur, Comilla and Bogra districts for expansion of the TCB’s activities. “We have a plan to establish godowns on TCB’s own land in Moulvibazar, Rangpur and Chittagong and construct residential buildings for TCB’s officers and employees at Uttara,” the minister informed the House.

Whenever any of our major trade partners contemplates a free trade agreement or special trade preferences for countries that are exporters of apparels, an alarm is raised that such an agreement would adversely impact on the export of apparels from Bangladesh. There was considerable unease when the European Union (EU) granted generalised system of preferences (GSP)+ trade privileges to Sri Lanka in 2005 and later to Pakistan in 2013. A great deal was said about the adverse impact of the privileges on Bangladesh’s apparel export to the EU. But belying the predictions, the export of apparel from Bangladesh to the EU grew by 2.8 times during the period 2005-14. Recently, the USA has moved to conclude a free trade agreement namely, Trans Pacific Partnership (TPP) Agreement, with eleven Pacific Rim countries including Vietnam. Since Vietnam is the second largest exporter of apparels to the USA, which happens to be the largest single country market for apparels of Bangladesh, the prospect of Vietnam receiving duty-free access to the USA has predictably raised an alarm among concerned people. With China in decline, Vietnam is already the most dynamic exporter of apparels to the USA. If it gets duty-free access, it can accelerate the increase in its US market share. Bangladesh being hobbled by high tariffs will be unable to match the competitive strength of Vietnam, and hence lose out – so the argument goes. It is undoubtedly true that Vietnam will become a more attractive import source of apparels if and when it gets duty-free access to the USA. Currently the importers of the USA pay 19 per cent duty on knit garments and 17 per cent on woven garments originating from Vietnam. The landed prices of Vietnamese knit and woven apparels could be reduced by this margin if Vietnam were to be granted duty-free status making it a rather attractive source for the US importers. Hence Vietnam’s export of apparels could increase at an even faster rate than the current high rate, and it will capture an increasingly larger share of the US market. However, this need not mean that Vietnam would increase its market share at the expense of Bangladesh. Vietnam is not the only competitor of Bangladesh in the US market; all countries that export apparels to the USA are competitors. Even if Bangladesh is less competitive than Vietnam, it is certainly more competitive than most of the other exporting countries. As shown in the table below, Vietnam’s apparel export to the USA increased by a massive 244 per cent during the 10-year period between 2005 and 2014, unmatched by any other substantial exporter. Bangladesh did not do as well, but the growth of its apparel export to the USA was 108 per cent during this period, which was the second highest among the top exporters. China with 81 per cent and Indonesia with 70 per cent were the next most dynamic exporters. Since these growth rates were much higher than the growth of apparel import demand of the USA, the share of all these countries in the US import of apparels increased albeit in different proportions. Hence good export performance by one or two countries does not necessarily stymie the space for growth of every other country.

There are at least two reasons why many exporting countries may not suffer, at least in absolute terms, due to a rapid expansion of export of a particular country such as Vietnam. First, secular increase in the US import of apparels may be greater than the increase in the export of Vietnam. Hence the absolute export of the other countries need not decline although the relative shares may change. Second, the duty-free access granted to Vietnam will most likely reduce the landed price of its apparel imported into the USA. There will be pressure on other exporters to reduce their prices. Firms in other countries that were exporting already at a slim margin may not be able to withstand this pressure. They will either reduce their export or go bust. Thus the main burden of adjustment to a large increase in the export of Vietnam, or for that matter any other country, will fall on these marginal firms in other countries. Bangladesh fortunately is not in this group as suggested by 2005-14 US import data. If it can improve its efficiency, then it need not suffer at all from Vietnam’s fortune. However, there are reasons for concern. The 10-year growth hides an important development. Most of the growth actually took place between 2005 and 2011. Since then there has been little growth in export of either knit or woven garments. Total apparel export increased by only 7.3 per cent between 2011 and 2014, which is only slightly more than the increase in the US apparel import demand. This obviously meant that Bangladesh barely managed a very small increase of 0.1 per cent in its share of the US market. In contrast, Vietnam’s share increased by 2.8 per cent (from 8.3 to 11.1 per cent) during these three years. Another important development is the beginning of the decline of China; its share declined from 38.2 per cent to 36.7 per cent. Its highest share of the US market, 39.7 per cent, was attained by China in 2010. Despite much hype about Bangladesh becoming an alternative powerhouse of apparel export, it is still to emerge as an alternative to China in the US market. But Vietnam has been successful in positioning itself as the major alternative source. Since China is likely to lose apparel market share rapidly in future, there will still be opportunities for Bangladesh. It must raise its efficiency level in order to carve out a greater share of the market. Given the political realities, there is little likelihood of obtaining duty-free access to the US apparel market without a free trade agreement. A country, especially the USA, does not enter into a free-trade agreement without a lengthy period of careful study, scrutiny and intense negotiations with both domestic stakeholders and partner countries. One does not have to be a genius to understand that the USA will not alter its decision on what is going to be the ‘cornerstone of the Obama Administration’s economic policy in the Asia Pacific’ representing 40 per cent of global gross domestic product (GDP) because of a complaint by a minor third party. What can then be achieved by expressing our concerns about TPP? Come to think of it, it does actually help the apparel exporters. If they could be shown to be a possible loser from the proposed TPP, it might help them extract some concessions from our government. It is a credible hypothesis that the presumed future loss of export market in the USA influenced, at least to some extent, the decision of the Finance Minister to a large reduction in the small tax-at-source on all apparel export proposed in the 2015-16 budget. (e-mail: m_a_taslim@yahoo.com)

Bangladesh earned US Dollar 124.73 billion by exporting readymade garments over the last six and a half years, Commerce Minister Tofail Ahmed said on Tuesday. “Bangladesh earned US Dollar 124.73 billion by exporting readymade garments to 140 countries of the world from January, 2008-2009 to May, 2014-2015,” he said in reply to a question raised by treasury bench member Didarul Alam (Chittagong-4). Responding to another question raised by ruling party lawmaker Enamul Haque (Rajshahi-4), the commerce minister said the government has taken various plans to reduce Bangladesh’s trade gap with India, China and Pakistan. Tofail said India allowed duty-free access of all Bangladeshi products except tobacco and narcotics products from November 9, 2011 following the steps of the Bangladesh government to boost trade with India. He said the efforts for removing duty and non-duty barriers through discussion at different time and levels are underway. “Steps have been undertaken to get duty-free access of a huge number of goods from other SAARC countries under the South Asian Free Trade Area (SAFTA),” Tofail said. The commerce minister said Bangladesh is participating regularly in the international trade fairs in Guwahati, Kolkata, New Delhi, Shilchar, Mumbai, Ranchi and Bhubaneswar in India to familiarise the Bangladeshi products. “This trend would continue in future,” he said. Tofail Ahmed said Bangladesh is also participating regularly in the international trade fairs in China and other SAARC countries to raise export, familiarise products and expand market. “We are also continuing bilateral and multilateral discussion with different countries to develop our trade ties,” he said. Besides, Tofail said, measures have been taken to increase Bangladesh’s trade contact with the businessmen of China, India and Pakistan.

Additional police forces have been deployed at the export processing zones (EPZs) in Chittagong to ward off any possible labourer unrest over timely payment of salaries and festival allowances in the apparel industries here ahead of Eid-ul-Fitr. In line with a government announcement, every apparel industry will have to pay salaries and festival allowances within July 14. A meeting was held in this regard on June 21 consisting representatives from the Bangladesh Garment Manufacturers’ and Exporters’ Association (BGMEA), Chittagong Metropolitan Police (CMP) and Industrial Police. CMP Commissioner Abdul Jalil Mondal during the meeting requested the ready-made garments (RMG) factory owners to pay all arrears and allowances by July 15 to avoid labourer unrest. Meanwhile, several hundred RMG workers of Glory Industries Ltd in Bayezid area observed a sit-in programme on last Thursday demanding their outstanding salary and bonus ahead of the ensuing Eid, the largest religious festival of Muslims. They also put up barricades on the roads adjacent to the factory, bringing traffic to a halt for about two hours. Director of Chittagong Industrial Police Tofayel Ahmed Mia said they have already prepared a list of defaulter factories having no membership of the BGMEA at all and are running on sub-contract basis “These factories also have previous records of not paying workers’ wages in time as they have no work orders,” he said, adding that they took necessary measures to avert any form of violence this time. He further said, “We’re also going to hold meetings with the owners of those listed factories in this regard.” General Secretary of Bangladesh Trade Union Sangha, Chittagong M Mamun said only 30 per cent RMG factories abide by the minimum salary structure set by the wage board. Sources in the BGMEA said at present 750 factory owners in Chittagong are members of the organisation. Of the total, they said, only 400 factories are running productions employing around 5,00,000 people. BGMEA has directed all its members to clear up outstanding wages and allowances in time to avert any untoward situation.

In order to shore up its topline and bottomline, clothing retailer American Apparel has announced the next phase of its strategic turnaround plan. “This plan includes a redesigned fall merchandise line, approximately $30 million in cost-cutting initiatives, and key additions to its leadership team,” a press release from the retailer informed. For the first time in the Company’s history, later this year, American Apparel will unveil a new fall line focused on advanced basics and key items in both men’s and women’s. In addition, the Company is undertaking a series of cost reduction initiatives to better align its cost structure with the headwinds of highly competitive, promotional retail environment and volatile foreign exchange markets. These initiatives are expected to reduce operating expenses by approximately $30 million over the next 18 months. Among other initiatives, cost-cutting measures will include closing underperforming retail locations to drive productivity improvements. In connection with these store closures, the apparel retailer will streamline its workforce to reflect a smaller store footprint and general industry conditions. Going forward, American Apparel will look to add new stores in profitable fast-growing territories while reducing its footprint in unprofitable and over-saturated markets. These initiatives, some of which will begin immediately, are aimed at stabilising it financially by maximising retail store performance and revamping the product merchandise assortment. According to American Apparel, even if it increases revenue and cuts costs, there can be no guarantee that it will have sufficient financing commitments to meet funding requirements for the next twelve months. “To do this, we might need to raise additional capital, and there can be no guarantee that we will be able to raise such additional capital,” it said. “These are necessary steps to help us adapt to headwinds in the retail industry, preserve jobs for the overwhelming majority of our 10,000 employees, and return the business to profitability,” CEO Paula Schneider said. “Our primary focus is on improving the processes and product mix that have led to steep losses over the past five years,” she too added. “Our customers, employees and local communities believe that American Apparel is an iconic brand that deserves to succeed and my job is to make that a reality,” the newly appointed CEO observed. The retailer also named Christine Olcu as general manager of Global Retail and Brad Gebhard as president of Wholesale to help execute its global retail and wholesale turnaround strategies. American Apparel is a vertically integrated manufacturer, distributor, and retailer of branded fashion-basic apparel and operates 239 retail stores in 20 countries including the US and Canada.

Renowned Dutch denim brand, G-Star RAW, has opened its first exclusive store in Mumbai in partnership with luxury label marketer and distributor, Genesis Luxury. Located on the second level of Palladium, the boutique measures 1200 square feet and is completely remodeled to showcase the brand’s creative spirit and distinct style, Genesis said in a press statement. G-Star RAW is best known for its ecological take on denim production—often creating styles using Japanese selvedge, unwashed raw denims and organic fabrics that aim to help save the environment. G-Star RAW is the innovative denim brand, renowned for its focus on denim craftsmanship and its constant innovation. G-Star continues to follow a philosophy of ‘Just the Product’, preferring to practice product engineering rather than design. The brand first revolutionised industry mindsets in 1996 by introducing raw, untreated denim as a wearable and desirable material. Head designer Pierre Morisset’s conception of the ‘3D Denim’ approach shook-up the industry for a second time in the same year. ‘3D Denim’ is a pioneering method in the construction techniques of jeans. Unlike traditional pattern making, which approaches the garment as a flat object, 3D Denim sculpts to the body’s form, creating a fit of increased precision and comfort, the statement said.

The recent FESPA 2015 Global Expo witnessed a significant increase in Asian visitors, including nearly 300 from China. Among the 23,137 visitors to FESPA 2015 in Cologne, Germany, there was a 59 per cent increase in visitors from Asia compared with FESPA 2010, making up 5 per cent of the total visitor base. “This highlights how the FESPA brand is strengthening its presence in the region, and how the wide format marketplace is of growing interest to leading Asian printers,” FESPA said in a press release. According to the organisers, the FESPA Awards 2015 were also a very popular contest for Asian printers and accounted for nearly 50 per cent of shortlisted entries across all categories. Asian printers laid particular emphasis on posters, fine art reproductions, special effect screen, t-shirts and other garments. Asian printers won three of the seventeen categories of which both, The Posters and Fine Art categories were by Kumazawa Screen Printing, Japan while, Sincerely Screen, Thailand was awarded Gold in the t-shirt category. The Hall of Fame Award dedicated to an outstanding individual in the printing world and voted online by the FESPA community, was awarded to Mark Gervais from Ningbo Shenzhou Knitting Co., Ltd in China. Roz McGuinness, divisional director at FESPA said, “The impact the FESPA China brand is having on awareness of FESPA in Asia, is very positive.” “We are delighted that visitor numbers from Asia to our Global Expo have grown significantly since FESPA 2010, and the increase in numbers from China in particular is very encouraging,” McGuinness added. “The main FESPA exhibition not only allows visitors from the region to see new technologies first hand, but also to attend demonstrations and seminars from industry leaders,” he observed. When it first launched FESPA China in 2013, its goal was to increase the number of international visitors to the existing event, while also providing more focus on digital technology. “The fact that more Asian visitors are attending our flagship European event shows a greater interest in digital printing, as people travel to see the latest digital technology and meet manufacturers,” FESPA too added. “With more and more international brands exhibiting at FESPA China, local printers can also benefit from the same exposure to leading global suppliers at the regional event in October 2015,” it noted. FESPA China 2015, taking place from October 21-23, 2015 in Shanghai, will be the third event of its kind and is expected to further strengthen the ties FESPA has with Asian suppliers and printers.

Nike has reached an agreement in principle with the University of Michigan to become the Wolverines’ official athletic footwear, apparel and equipment provider to 2027, with an option to extend the deal to 2031. In a statement, Nike said the partnership will commence on August 1, 2016. Nike will supply all 31 of the university’s athletics programmes with uniforms, footwear, apparel and equipment. The university and Nike also will collaborate throughout the agreement on innovation initiatives in sports technology, design and best practices. “After careful consideration, the right partner for the University of Michigan was Nike,” said the university’s interim athletic director Jim Hackett. “This decision, this partnership is about more than Michigan athletics; at the core, it is about our university community and it is about two great names reuniting for an opportunity that speaks to more than uniforms and apparel. Nike is a recognized leader in its field when it comes to product innovation and we look forward to future collaboration.” Michigan aspires to unlock new possibilities for the entire university community with the partnership including student internships at Nike headquarters and community events. The agreement includes use of the Jordan Brand “Jumpman” apparel and footwear for men’s and women’s basketball, the statement said. Fans will be able to purchase officially licensed Michigan gear produced by Nike once the partnership commences in August 2016. “The University of Michigan ranks high among the world’s great institutions of higher learning and enjoys a rich, tradition-laden history in college sports. Nike is especially proud to partner with the Wolverines and have the opportunity once again to work with Michigan student-athletes, coaches and staff. We eagerly look forward to bringing out the best in each other,” says Joaquin Hidalgo, vice president and general manager, Nike North America.