Refayet Ullah Mirdha

Bangladesh’s garment exports to Canada may continue to enjoy duty-free trade benefits after the graduation of the country to a developing nation, said a top businessman.

Bangladesh’s garment export to the United Kingdom (UK) is expected to rise significantly as the British government will continue to offer duty-free benefits to developing nations even after they graduate from the least developed country (LDC) status.

Trade economists are being cautiously optimistic about the immediate benefits if Bangladesh is given membership of the BRICS bloc, which is a five-nation alliance comprising Brazil, Russia, India, China and South Africa.

Textile and garment behemoths in Bangladesh have started ploughing their surplus wealth into new sectors in order to tap the potential in an economy that is growing at a healthy clip and consumers’ purchasing power is rising. 

Jute and jute goods exporters could come under more pressure in India as New Delhi plans to impose countervailing duty (CVD) on their shipment, at a time when they are already facing an anti-dumping duty (ADD) in the market.

Investment has dried up in Bangladesh’s dyeing sector, a vital cog in the textile and apparel supply chain, owing to the dragging gas shortage despite higher demand for fabrics from local garment exporters, industry people say.

Local garment exporters do not expect any substantial increase in shipments to the Western world centring upcoming Christmas sales because of high inflation and for old stocks remaining unsold in retail stores in the American and European markets, exporters said. 

Businesses have sought more time for the rationalisation of Bangladesh’s maiden tariff policy, reasoning that many industries still need more state protection to be ready to compete with their international peers. 

Bangladesh has formulated its maiden tariff policy to improve the competitiveness of local companies in the international market as they brace for an increased competition after the country becomes a developing nation in 2026. 

Bureau 555, a joint venture between two entrepreneurs of Bangladesh and the United Kingdom, has been facilitating garment exports through the country’s first digital fabrics development facility in Gulshan, Dhaka.

American Apparel and Footwear Association (AAFA), a US-based platform of apparel and footwear traders, expressed deep concern over the recent situation regarding labour rights in Bangladesh.

Bangladesh is hopeful of an Indian guarantee of a quota ensuring the year-round import of seven essential commodities as the neighbouring country has shown interest and bilateral negotiations are progressing for signing an associated agreement. 

Bangladesh’s apparel exporters displayed the sharpest growth in the US in 2022, leaving behind their competitors in the countries such as China and Vietnam, owing mainly to the lingering tariff war between Washington and Beijing and capacity building.  

The perennial energy crisis of industries in Bangladesh remains unresolved even though energy prices have been hiked considerably to offset government subsidies in the sector and facilitate industrial productivity.

Bangladesh is still lagging behind competitors in the production of recycled yarn although the market for such yarn is swelling, especially in tune with new environmental laws being formulated by the European Union (EU).

Bangladesh’s share in the global readymade garment trade more than tripled in the past 17 years as the country cements its position as one of the largest suppliers internationally.   

Exports continued their spirited showing into the new fiscal year, bringing home $4.59 billion in July, in what can be viewed as a lone bright spark in the economy that has been dogged by fast depleting reserves, narrow fiscal space and slowing industrial activities.

Bangladesh focused on areas of duty-reduction and increasing investment from Japan during recent discussions on the potential signing of an Economic Partnership Agreement (EPA) between the two countries, according to an official of the commerce ministry.

The biennial election of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) scheduled for July 31 is going to be an exercise to maintain a formality since a majority of the directors have already been nominated and elected unopposed. 

Bangladesh and Japan yesterday outlined areas of focus for a joint study that would act as a principal guideline for signing an economic partnership agreement (EPA) to increase bilateral trade and investment between the two countries.