Bangladesh’s exports of apparel to the US market are continuously falling. Last year, exports decreased by 25 per cent. The same is the case this year. At the end of February, exports declined by 19 per cent to US $ 1.18 billion.
According to data from the Office of Textiles and garment (OTEXA) of the US Department of Commerce, between January and March of this year, garment exports to the US market decreased by 17.68 per cent to US $ 1.75 billion, while shipments of textiles and apparel together decreased by 17.37 per cent to US $ 1.81 billion.
The US has seen less inflation in recent months, but as a result of stores and brands reducing their clothing imports, the country’s apparel exports have decreased.
In 2022, US imported a total of US $ 99.86 billion in ready-made clothing, which reduced to US $ 77.84 billion in 2023 meaning a 22 per cent decrease. In January-February of 2024, the US imported US $ 12.18 billion of apparel from different countries. This import is 7.78 per cent less than the same period last year of US $ 13.21 billion.
After the Covid pandemic, apparel exports from Bangladesh to the United States have increased by more than 53 per cent. US retailers and brands imported more to meet demand in 2022. However, apparel exports did not increase much last year as they were left with unsold garments. According to reports, many exporters claim that US apparel exports are declining for several other reasons.
However, the National Retail Federation (NRF), the largest platform of US retailers, said retail sales rose at a steady pace in March as commodity inflation eased.
According to Matthew Shay, President and CEO of NRF, to satisfy consumers in a fiercely competitive market, product prices must be kept as low as feasible.
In addition to the drop in exports, the US market is also concerning. The US government agency International Trade Commission (USITC) is initiating an investigation into Bangladesh as well as the top five garment exporting nations—India, Cambodia, Indonesia, and Pakistan—at the request of the US Trade Representative (USTR).