A file photo shows workers arranging clothes at a ready-made garments factory on the outskirt in Dhaka. Country’s apparel exports to the US in the first half of 2019 registered highest growth among the competitor countries as US buyers shifted orders from China to Bangladesh and other countries due to the on-going US-China trade tension. — New Age photo
Country’s apparel exports to the US in the first half of 2019 registered highest growth among the competitor countries as US buyers shifted orders from China to Bangladesh and other countries due to the on-going US-China trade tension.
Experts and exporters said that the country’s RMG export to the US might rise further in coming months following US president Donald Trump’s threat issued on Thursday to impose tariffs on more China products including apparel items.
Bangladesh’s earnings from readymade garment exports to the US in January-June grew by 14.49 per cent to $3.08 billion from $2.69 billion in the same period of 2018, according to data of the Office of Textiles and Apparel under the US Department of Commerce released on Friday.
Experts and exporters said that Bangladesh’s RMG exports to the US had been growing as US buyers were shifting orders from China to Bangladesh and other countries even though US president Donald Trump was yet to impose tariff on China apparel products.
The buyers became worried as US and China have been in trade war for months with both countries imposing tariffs on each other’s products worth over $250 billion
Although the US import of apparel from China was still high, the growth in import from the country in the first half of 2019 remained almost static at 0.68 per cent standing at $11.30 billion against $11.23 billion in the same period of last year.
Vietnam’s RMG export to the US in the January-June in 2019 grew by 11.74 per cent to $6.36 billion from $5.69 billion in the same period of 2018, US data showed.
The US apparel import from India in the first half of 2019 stood $2.26 billion with 10.43 per cent growth while the import from Indonesia grew by 2.35 per cent to $2.27 billion in the period.
Apparel exports of Cambodia in January-June in 2019 grew by 8.30 per cent to $1.20 billion while the exports of Mexico to the US in period fell by 3.49 per cent to $1.60 billion, the OTEXA data showed.
Apparel exporters said that Bangladesh’s exports to the US would rise further if Donald Trump went ahead with his threat to impose tariffs on more China products, including apparel items.
Trump on Thursday announced to slap a 10 per cent tariff on $300 billion of Chinese imports including apparel from next month as he became angry with the progress of US-China dialogue to reach an agreement over trade.
Bangladesh Garment Manufacturers and Exporters Association president Rubana Huq told New Age that the US tariff on more Chinese import would open up the door of opportunity for Bangladesh readymade garment sector.
‘But we need to align products as per US’ requirement. Otherwise countries like Vietnam will gain,’ she said.
On Bangladesh RMG exporters’ gains in US market, Policy Research Institute executive director Ahsan H Mansur recently told New Age that Bangladesh RMG sector was getting more orders from US buyers because of US-China trade war.
He said that to capture additional US market, Bangladesh apparel sector should improve capacity and diversification of products.
Source: New age.