Bangladesh has the potential to grab more market share to the European Union (EU) even within the garment items if the products are diversified, said Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development Bangladesh (RAPID), a private think tank.
For instance, Bangladesh’s share in cotton fibre garment to the EU is 34.7 per cent and china’s share in the same products in the same market is only 14.9 per cent.
On the other hand, china’s share in non-cotton garment items to the EU is 41.2 per cent and Bangladesh’s pie in the same product category in the same market is only 12.2 per cent.
Razzaque presented a study on “Exploring Export Diversification Opportunities in the European Union” at a seminar at Six Seasons Hotel in Dhaka organised by the RAPID in collaboration with Friedrich- Ebert-Stiftung (FES) Bangladesh Office.
Bangladesh’s apparel export to the EU is projected to rise to $46 billion to $60 billion by 2030, Razzaque said in the study.
Sourcing diversification away from China may help Bangladesh’s RMG export growth. Moving towards MMF can be greatly facilitated by extended EU preferences beyond LDC graduation, the study said.
Estimations are based on current supply side capacity demand condition and market access condition. Non-apparel products with high export potential include footwear, leather goods, home textiles, and fish and shrimp.
With the imminent LDC graduation, the urgency for export diversification has never been more pronounced, the study reads.
The EU market, with its vast consumer base and historical trade ties with Bangladesh, can act as a catalyst.
However, along with the dominant role of the garment sector in Bangladesh’s exports, its potential for expansion remains vast, especially as china’s share in the global market, including in the EU dwindles.
Senior commerce Secretary Tapan Kanti Ghosh said Bangladesh has the diversified products, but garment sector has been dominating.
Bangladesh has already done a lot about the compliances in the factory level, he said. EU Ambassador to Bangladesh Charles Whitely also spoke.
