September sees significant decline in RMG export to EU and USA
Bangladesh’s exports of ready-made garments to its two major markets, the United States and the European Union (EU), have significantly declined. Exports to the US fell by 10.28%, while exports to the EU decreased by 4.84% in the first seven months of 2024 compared to the same period in 2023. The US and EU are crucial markets, with 18% of Bangladesh’s RMG exports going to the US and around 50% to Europe.
According to the US Office of Textiles and Apparel (OTEXA), Bangladesh exported $4.57 billion worth of garments to the US in January-July 2023, but this dropped to $4.10 billion during the same period in 2024. In Europe, data from Eurostat shows that exports decreased from $11.68 billion to $11.11 billion in the same timeframe.
The decline in exports is partly due to reduced demand caused by inflation in both the US and EU. Additionally, Bangladesh lacks duty-free access to the US market, making it less competitive than countries with such benefits. Political instability and labor unrest in Bangladesh have also disrupted garment production, raising concerns about a further decrease in future orders.
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