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28 March 2024


Business Insider Bangladesh

Apparel exports to USA thrive despite inflationary pressure

Jannatul Ferdushy || BusinessInsider

Published: 11:33, 8 August 2022  
Apparel exports to USA thrive despite inflationary pressure

Photo: Business Insider Bangladesh

While apparel export of the country declined in the global market since Russian invasion of Ukraine, export to USA grew by 60.30 percent in the first six months of 2022 due to the US’s prudent economic policies amid pandemic and stagflation.

According to recent data released by the Office of Textiles and Apparel (OTEXA) USA, Bangladesh’s shipment aggregated $5 billion during January-June period as against $3 billion during the corresponding period of the earlier year.

Bangladesh topped the import list considering shipment of denim products and trousers.

The industry insiders think that Europe has been affected more by the war than that of the USA.

Moreover, Sino-US relations are getting soured over multiple issues, including Washington’s support for Taipei. And, because of higher product prices, the USA is importing less from its Southern neighbours. As a result, Bangladeshi exporters have started bagging fortunes.

“America overcame the pandemic wisely which Europe could not. That’s why our exports to the USA continued satisfactorily amid the pandemic. Besides, due to the price hike of raw materials, the USA cut its work orders for nearby countries like Peru and Mexico. Those countries had hiked prices more than what Bangladesh did. It is good for us,” Mohiuddin Rubel, director of Denim Export Ltd, told Business Insider Bangladesh.

As the USA is less dependent on Russia and Ukraine, he said, than many of the European countries in terms of fuel and food grain imports, and, therefore, they are less affected than the EU.

Some said Bangladeshi exporters’ firm relationship with US importers is also playing a major role.

“We have developed a strong relationship with the USA buyers. Our supply chain is also at a satisfactory level amid inflationary pressure. So, we are confident about our shipment growth in the US market,” Shahidullah Azim, acting president of BGMEA, told Business Insider Bangladesh.

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