Garment export to USA falls 2.58%

Garment exports to the USA, the single largest export destination for Bangladesh, fell by 2.58 percent year-on-year to $5.46 billion in the July-February period of the current fiscal year.

American retailers and brands imported 23 percent lower amount of clothing items last year compared to the previous year because of high inflationary pressure, which impacted Bangladesh's shipment to the US markets.

Thanks to the presence of competitive pricing and long-time trade relations, Bangladesh is the third largest garment supplier to the USA after China and Vietnam.

Bangladesh's performance has been strong compared to its peers in case of garment export to the USA despite being slapped with a 15.62 percent tariff, the highest in the world in this particular market.

However, clothing sales have started increasing in the US economy thanks to the recent recovery of the market.

The National Retail Federation (NRF), the largest retailers' platform in the USA, said sales in the clothing and accessories stores were up 0.51 percent month-over-month and up 8.05 percent year-on-year in February.

"February retail sales indicate continued momentum from consumers," NRF President and CEO Matthew Shay said.

"While the future direction of interest rates and inflation remains uncertain, it's clear that a strong job market and increases in real wages are continuing to support spending."

In the July-February period of 2023-24 fiscal year, garment export to the European Union, the biggest trade block for Bangladesh, reached $16.23 billion, posting a 3.27 percent year-on-year jump, according to data compiled by the Export Promotion Bureau and Bangladesh Garment Manufacturers and Exporters Association.

Apparel shipment to Spain, France, Netherlands, Poland and Denmark showed 8.68 percent, 4.72 percent, 14.55 percent, 21.82 percent and 32.81 percent growth respectively.

However, the apparel export to Italy declined by 0.93 percent year-on-year in the July-February period.

On the other hand, RMG export to Germany, the largest market in the EU, declined by 11.63 percent year-on-year to $4.09 billion.

At the same time, the garment export to the UK and Canada reached $3.85 billion and $998.77 million, posting a 14.64 percent and 1.81 percent year-on-year growth respectively.

Meanwhile, apparel export to the non-traditional markets grew by 10.83 percent year-on-year to $6.30 billion.

Among the major non-traditional markets, exports to Japan, Australia and South Korea increased by 7.12 percent, 21.29 percent and 17.16 percent respectively.

However, apparel export to India declined by 22.99 percent year-on-year in the July-February period.