Bangladesh’s ready-made garment (RMG) exports to the European Union (EU) from January to April 2024 decreased by 9.85 per cent, totaling 6.01 billion euros compared to 6.67 billion euros in the same period of 2023, according to Eurostat, the statistical office of the EU.

Exporters noted that Bangladesh managed to marginally reduce its negative growth in apparel exports to the EU, a 27-nation economic bloc, but performed less favorably than its competitors during this period.

They attributed Bangladesh’s lagging performance in the EU market, similar to the United States, to factors such as severe energy crises, high utility costs, increased production expenses, extended lead times, and complex customs procedures.

The decline in Bangladesh’s knitwear exports to the EU was notable, dropping from 3.88 billion euros in Jan-Apr 2023 to 3.38 billion euros in the same period of 2024. Similarly, woven garment exports fell from 2.79 billion euros to 2.64 billion euros during the respective periods.

Eurostat data indicated a 6.28 per cent decrease in the EU’s total clothing imports from various countries, amounting to 26.41 billion euros in Jan-Apr 2024 compared to 28.19 billion euros in Jan-Apr 2023.

Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), highlighted that Bangladesh’s competitiveness in major markets was declining due to rising production costs from utility bills and workers’ wages.

He emphasized that power and gas crises resulted in factories operating at 60-70% capacity, causing delays of 20-25 days in finished goods production.

Bangladesh faced negative growth not only in the EU but also in the US and the UK, owing to internal challenges, as per Hatem.

Meanwhile, the EU recorded declines in apparel imports from China (-1.81 per cent), Turkey (-11.84 per cent), India (-10.74 per cent), and Vietnam (-6.25 per cent) in the first four months of 2024.

Additionally, Bangladesh witnessed a negative growth of over 14 per cent in apparel exports to the US, earning $2.30 billion from January to April 2024, according to the US Department of Commerce’s Office of Textiles and Apparel.