In an encouraging development, Bangladesh’s apparel exports to the European Union (EU) witnessed a substantial increase of 9.93% in the fiscal year 2021-22, reaching a value of US$23.52 billion compared to US$21.40 billion in the previous year. This surge accounted for an impressive 50.07% share of the country’s total exports. However, the export figures reveal a mixed bag, as certain major markets within the EU experienced a decline.
Mohiuddin Rubel, Director, BGMEA, Additional Managing Director, Denim Expert LimitedGermany and Poland, traditionally significant destinations for Bangladeshi garments, faced a notable decrease in imports from Bangladesh. The apparel exports to Germany registered a considerable drop, contributing to a decline in the overall EU market. Similarly, Poland also witnessed a significant downturn in imports of Bangladeshi garments.
Despite the challenges in Germany and Poland, Bangladesh’s apparel exports to several other EU countries demonstrated positive momentum. Spain, France, Italy, Denmark, and the Netherlands emerged as promising markets, with apparel exports reaching US$3.37 billion, US$2.94 billion, US$2.27 billion, US$1.28 billion, and US$1.85 billion, respectively.
Meanwhile, the United States, which traditionally serves as the top apparel export destination for Bangladesh, experienced a decline of 5.51% in imports. Bangladesh’s apparel exports to the US stood at US$8.51 billion, down from US$9.01 billion in the fiscal year 2021-22, representing 18.12% of the country’s total exports.
On a positive note, Bangladesh witnessed a surge in Ready-Made Garment (RMG) exports to the United Kingdom and Canada. The exports to the UK exhibited an 11.78% growth, while exports to Canada increased by 16.55% year-over-year. These figures accounted for 10.70% and 3.29% of Bangladesh’s total exports, respectively.
Notably, Bangladesh’s foray into non-traditional markets yielded fruitful results, with exports to these markets experiencing a remarkable growth rate of 31.38%. Among the major non-traditional markets, exports to Japan, Australia, and India crossed the significant milestone of one billion dollars. The share of non-traditional markets in Bangladesh’s total apparel exports also witnessed a substantial increase, rising to 17.82% in the fiscal year 2022-23 from 14.96% in the previous year.
While Bangladesh celebrates its overall growth in apparel exports to the EU and the expansion into non-traditional markets, the decline in key markets such as Germany, Poland, and the United States serves as a reminder of the need to diversify and strengthen trade partnerships. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and industry stakeholders are expected to closely analyze these trends and strategize for sustained growth in the coming years.
