RMG export to US shrinks by 14.56% from Jan to Aug

Garments export to the United States (US) has reduced by 14.56% which is over $59.41 crore dollars during the eight-month period from January to August of this year, thanks to the coronavirus pandemic.

The US is the single largest country in the world to export garments after the European Union.

Statistics revealed by the Office of Textile and Apparels on October 5 said from January to August of this year, Bangladesh exported garments worth just over $348.53 crore dollars which was $407.95 crore dollars during the same period of the last year.

Amid the plummeting demand of garments due to Covid-19, the US also downsized import from other competitors of Bangladesh like Vietnam and China.

Vietnamese garments export to the US stands at $817.60 crore dollar after shrinking by 9.77% from January to August of this year.

Experts predict further slimming of garments export to the US because of the pandemic.

President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Dr. Rubana Haque said, "Being outshined by Vietnam, Bangladesh never topped in the US market. Amid the coronavirus pandemic situation, the US importers trimmed their orders not only from Bangladesh but also from Vietnam and China".

According to the data of the US Department of Commerce, garments export to the US dropped by 29.52% from all over the world.

Because of trade war between US and China, garments export to the US from China reduced sharply by 48%. Besides, exports from Vietnam and Bangladesh also dropped by 9.77% and 14.56% respectively.

Due to Covid-19, garments export to the US started to decline from January of this year and became more downward from April to June although from July and onward export growth has seen an upward trend.

According to the US census bureau, in May it has recorded -62% growth in retail which was -22% [A1] in August.

Bangladesh witnessed 16% export growth in August to the US after accounting the shipments of June and July.

Global trade came to a halt amid the outbreak of the coronavirus pandemic which was first detected in December 2019 in China and later spread across the world by the mid of April.

To prevent the spread of coronavirus, Bangladesh went on to lockdown officially labelled as general holidays from the end of March to May.

Over the course of pandemic, global buyers truncated orders worth $318 crore dollars from Bangladesh which rendered thousands of garment workers jobless.

sh/wi