Bangladesh earned US $ 1.08 billion from apparel exports to US in the first 2 months of 2019. This marks a jump of 10.10 per cent year-on-year.
The numbers, reportedly, are expected to increase further once 25 per cent duty is imposed by US on Chinese imported products.
When US President Trump had announced about 25 per cent duty on Chinese imported products in 2018, apparels were not a part of it. However, recently, he made it clear that this was applicable for apparel products as well.
Once this comes into effect, Bangladesh could become the favourite sourcing destination for several global retailers. “This announcement by US President will now encourage US retailers to consider Bangladesh an alternative destination, but a lot will depend on price negotiations with retailers,” elaborated Faisal Samad, Senior Vice-President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
It is important to note that apparel export from Bangladesh to US has been lately on rise mainly due to the ongoing trade war between US and China. Besides, improved working conditions in nation’s garment factories have also caught world attention.
Rick Helfenbein, President and CEO, American Apparel & Footwear Association (AAFA), said that the 25 per cent duty to be imposed on 10 May could hurt US families and US firms and thereby US economy too. Therefore, AAFA has urged the President not to impose duty but negotiate further with China.