Clothing exports to the EU increased by 8.5% in February

Bangladesh’s garment exports to the European Union market rose 8.5% month-on-month to around €1.3 billion in February this year – the highest level in the past four months.

However, shipments to the 27-nation economic bloc remained 18.6% lower compared to the corresponding month a year ago, according to Eurostat.

Bangladesh has witnessed the largest drop in apparel exports among its peers in EU countries in the first two months of 2024. This trend mirrors a similar decline seen in the US market over the same period.

SM Mannan Kochi, chairman of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said garment exports are facing a challenging time as most buyers are not paying appropriate prices.

He explained that exporters are losing competitiveness despite higher production costs due to increases in energy prices and wages.

He also expressed concern that the escalation between Iran and Israel could significantly affect exporters in the coming months.

Mohammad Hatem, executive chairman of Bangladesh Knitwear Manufacturers and Exporters Association, echoed the BGMEA president’s sentiments.

He said inquiries from Western buyers have increased in recent months, but many manufacturers are unable to fulfill their orders as buyers offer low prices.

Hatem also noted that buyers are now looking for shorter lead times, but shipping time in Bangladesh has increased from 50-60 days to 89-90 days due to the gas crisis. As a result, many Western buyers are placing their orders in Vietnam and China, he said.

In January and February 2024, the South Asian country experienced a significant drop in clothing exports to the EU market, amounting to a decline of 26.74%.

According to Eurostat, the statistical agency of the European Union, Bangladesh’s exports during this period totaled €2.48 billion, compared to €3.39 billion in the corresponding period of 2023.

Exporters emphasized that despite a surge in global demand for apparel, the benefits for Bangladesh were minimal due to longer lead times and rising production costs.

Specifically, the country saw a decline in knitwear exports to the EU in the period January-February 2024, amounting to €1.42 billion, compared to €2 billion in the same period a year ago.

Similarly, the country’s woven garment exports to the 27-nation economic bloc fell to €1.06 billion during the first two months of 2024 from €1.38 billion in the corresponding period last year, according to Eurostat data .

Recent data from the US Department of Commerce’s Office of Textiles and Apparel shows that Bangladesh has fallen behind its peers in apparel exports to the US market during January-February 2024.

According to OTEXA data, Bangladesh experienced a notable 19.24% decline in apparel exports to the US in the first two months of this year. This contrasts with China, which saw export growth of 0.48%, and Vietnam, which recorded an increase of 0.14% over the same period.

According to Eurostat, EU clothing imports from various countries fell by 15.31% to €12.53 billion in the first two months of 2024, compared to €14.80 billion in the same period last year.

Specifically, clothing imports from China to the EU fell by 13.12% to €3.33 billion in the January-February period, compared to €3.83 billion in the same period of 2023.

The EU’s clothing imports from Turkey fell by 10.69% to €1.54 billion, compared to €1.72 billion in the same period the previous year.