Trade war proves a boon for apparel

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Bangladesh's apparel exports to the united states grew 16.09 per cent year-on-year to $637 million in January amid the US-China trade war.

Aside from Bangladesh, four other countries, which are among the most notable 10 garment producers worldwide, also saw their shipment to the US market rise in January, according to data from the Office of Textiles and Apparel (OTEXA) of the US.

Garment exports from Vietnam grew 4.25 % to $1.39 billion, from Indonesia 3.48 per cent to $445 million, from Cambodia 25.61 % to $319 million and from Honduras 1.07 per cent to 155 million year-on-year, OTEXA data showed.

The increased earnings from apparel shipments to the US, Bangladesh's main export destination for garment products, originated from previously positioned work orders and as a result of trade war between China and the united states, said MA Jabbar, managing director of DBL Group, a respected garments exporter.

A good amount of work orders has shifted from China to Bangladesh due to the continued conflict between two major economies, the US and China, for days gone by 2 yrs, according to industry insiders.

Although Bangladesh seemed to benefit from the trade conflict, the garment export may come under pressure in the coming months as a result of the fast-spreading coronavirus on earth and specifically in the developed economies that are also the country's major export destinations.

"Our exports can also be in big trouble if the coronavirus situation in Europe and the US will not improve soon. The crisis being faced by both of these markets [the US and China] has only deepened after the outbreak was declared a pandemic," Jabbar told The Daily Star by phone.

Because the supply chain for raw materials from China is improving gradually, production may soon go back to normalcy aswell, said KI Hossain, president of the Bangladesh Garment Buying House Association. "However, those mixed up in garment industry should remain cautious," he said in a statement.

China's apparel exports to the united states dipped by 31.68 % to $2.47 billion and consignments to India dropped by 0.18 % to $720 million.

The Pakistan market for China shrank 4.34 % to $261 million and shipments to Mexico decreased by 10.57 per cent to $304 million and South Korea by 10.30 per cent to $80 million.
Source: https://www.thedailystar.net

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