Bangladesh’s apparel exports to the European Union during the first seven months of 2024 (January to July) experienced a decline of 4.84 per cent.
This decrease was slightly more favourable than the overall drop of 5.22 per cent in the EU’s imports during the same period.
According to data from Eurostat, the statistical office of the European Union, the country’s apparel exports to the EU fell to $11.11 billion, down from $11.68 billion in the corresponding period of 2023.
During January to July 2024, the EU’s imports of ready-made garments from various countries declined by 5.22 per cent, totalling $49.85 billion compared to $52.60 billion in the same timeframe last year.
Exporters have expressed concerns about the decline in Bangladesh’s apparel exports, noting that although it is less severe than the reductions faced by some competitors, it raises questions about the country’s ability to maintain its competitive edge in the EU market.
The decrease in imports by the EU from various countries indicated potential shifts in consumer demand and underlying economic factors affecting the overall apparel market, they said.
The Eurostat data showed that apparel imports by the EU from China in the first seven months of 2024 declined by 7.34 per cent to $12.34 billion compared with those of $13.31 billion in the same period of the past year.
Apparel imports of the EU from Turkey in January-July of 2024 declined by 8.55 per cent to $5.89 billion compared with those of $6.44 billion in the same period of 2023, the EU data showed.
India’s RMG exports to the EU in the first seven months of 2024 fell by 1.93 per cent to $2.96 billion compared with those of $3.01 billion in the same period of the previous year.
Apparel imports of the EU from Vietnam in January-June of 2024 fell by 5.07 per cent to $2.19 billion compared with those of $2.31 billion in the same period of 2023.
However, RMG exports by Cambodia to the EU in the first seven months of 2024 grew by 10.36 per cent to $2.03 billion compared with those of $1.84 billion in the same period of the previous year.
Apparel imports of the EU from Pakistan in January-June of 2024 also increased by 6.32 per cent to $2.06 billion compared with those of $1.94 billion in the same period of 2023.
Morocco’s RMG exports to the EU in the first seven months of 2024 increased by 4.04 per cent to $1.73 billion compared with those of $1.67 billion in the same period of the previous year.
According to the EU data, Cambodia and Pakistan’s performances on the EU apparel market stood in stark contrast to the overall decline in imports from many other suppliers, including Bangladesh, China and Turkey.
Experts opined that the positive growth rates of Cambodia and Pakistan indicated a potential shift in sourcing preferences within the EU, highlighting the importance of adaptability and competitiveness on that dynamic market.
The readymade garment imports by the EU from Sri Lanka in January-July of 2024 fell by 4.45 per cent to $766.90 million compared with those of $802.61 million in the same period of 2023.
Indonesia’s apparel exports to the EU in the first seven months of 2024 also fell, by 8.86 per cent, to $580.07 million compared with those of $636.47 million in the same period of the previous year.
Bangladesh’s apparel makers said that high utility costs, gas shortages and wage increases had weakened the country’s competitive position
They also said that ongoing energy shortages had restricted manufacturers’ production capacity and delayed raw material procurement resulted in extended timelines, causing delays of 20-25 days in making shipment, further impacting competitiveness.