Apparel export to EU increased by 5.4pc in Jan-Feb
Staff Reporter :
Readymade garments import by European Union (EU) from Bangladesh increased by 5.4 per cent in first two months (January-February) period of this year amid, although the demand for the clothing items declined in the global market due to high inflation caused by ongoing Russia-Ukraine war.
But, the EU’s apparel import from the world in the mentioned period has declined by $322 million or 2.03 per cent compared to the corresponding period of 2022, according to the latest data of EUROSTAT.
Clothing imports of the 27-nation economic bloc from Bangladesh stood $183 million, although the apparel import, in terms of quantity, from the country declined by 3.02 per cent during the mentioned period, the data showed.
Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that the apparel exports to the EU increased because of an increase in unit prices for garment items.
International clothing retailers and brands started paying slightly more for Bangladeshi apparel items considering three important factors, including the high price of raw materials, production of high-end value-added items and improvements in compliance and workplace safety, he added. The EU is the largest export destination for Bangladesh as most goods produced in the country are shipped there.
Bangladesh registered the export growth to the EU even amid the war mainly due to the production of basic and semi-high value-added garment items, for which the demand does not fall even in the face of high inflation.
On the other hand, China is losing its garment business in the EU as it produces high-end value-added garment items that have less demand during times of crises, the BGMEA president said.
With 22.75 per cent share of the EU’s total RMG import Bangladesh remains the 2nd largest apparel import source for the EU after China (26.27 per cent share).
The EUROSTAT data also showed that in terms of quantity (measured in kilogram), EU’s clothing import had a stiff downturn by 10.09 per cent, which is 70 million Kgs less than Jan-Feb 2022.
During the mentioned period, import from China declined by 13.11 per cent in value terms, which means $616 million decline. In terms of quantity, the decline is recorded 16.42 per cent or 32 million Kgs.
In contrast, EU’s import from Bangladesh increased by 5.47 per cent or $183 million during the mentioned period. However, import from Bangladesh saw a decline in quantity term by 3.02 per cent or 6 million Kgs.
Among the top ten apparel-sourcing countries Bangladesh, India, Vietnam and Pakistan have shown positive growth while EU’s import from other countries including Turkey has declined.
On the other hand, EUs import from the top sourcing country China has declined by 13.11 per cent year-over-year and reached $4.08 billion. EU’s imports from Turkey the 3rd largest apparel source have declined by 11 per cent year-over-year. During January-February 2023, EU imported $1.82 billion worth of clothing from Turkey.
