Why Bangladesh’s garment exports to EU fell despite rising European demand
Exports to the EU's 27 member states declined by 3.98% between July and January compared with the same period a year earlier.
The country's garment exports to the European Union fell by nearly 4% in the first seven months of the current financial year, as exporters faced stiffer competition and weaker global demand.
Exports to the EU's 27 member states declined by 3.98% between July and January compared with the same period a year earlier, according to data from Bangladesh's Export Promotion Bureau (EPB).
Data from Eurostat, which tracks apparel imports into Europe, show that EU apparel imports rose by nearly 7% between January and November.
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Despite this overall growth, Bangladesh's share declined during the period.
EPB figures show that Bangladesh exported garments worth $11.34 billion to the EU in the seven months to January, down from $11.81 billion in the same period of the previous financial year.
Shehab Udduza Chowdhury, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Business Standard, "Global apparel consumption is slow. At the same time, due to higher tariffs in the US compared to Bangladesh, China and India have negotiated orders in Europe at lower prices. As a result, we have fallen slightly behind in competition."
"The nature of buyers is simple – they buy from wherever they get the lowest price. That is why we have lost some ground in that market," he added.
