Garment exports to the EU fell by 3.53% between January and August

Bangladesh retained the second position in garment exports to the European Union (EU), but the South Asian country’s garment shipments to the bloc declined by 3.53 percent in the January-August period to to $12.9 billion due to political turmoil and labor unrest, according to data. from Eurostat.

High inflationary pressures on the European economy also had an impact, with exports from most major destinations trending downward.

EU nations imported clothing items totaling $59.32 billion in the eight months, down 3.63 percent.

Garment exports from China, the biggest exporter of clothing items to the EU, fell 4.10 percent to $15.62 billion in the same period, the data showed.

Turkey secured the third position, exporting $6.84 billion worth of clothing, down 7.52%, while India was the fourth exporter with $3.33 billion worth of shipments, 2.73% less.

While shipments of clothing from major exporting countries to the EU declined, Cambodia’s exports rose 12.78 percent to $2.51 billion.

Pakistan also performed well, registering a 7.32% increase to $2.43 billion. Another gainer was Morocco, which saw garment exports to the EU grow by 6.09 percent to $2 billion.

Meanwhile, shipments from Sri Lanka declined 1.45 percent to $906.91 million and those from Indonesia declined 9.35 percent to $677.53 million.

Garment exporters in Bangladesh have been mired in crisis, witnessing a tumultuous scene in July, August, September and the first part of October.

This began with political unrest and national student protests in July and culminated in the political change on August 5.

However, political and economic uncertainty as well as incidents of arson and extortion continued to cast a shadow over normal business operations.

The situation was compounded by periods of labor unrest in industrial belts since September, which led to production losses worth $400 million, according to data from the Bangladesh Garment Manufacturers and Exporters Association.

With months of turmoil affecting business operations, most exporters struggled to meet delivery deadlines and ship goods on time.

They also faced job order cancellations and factory visits by representatives of international clothing brands and retailers were postponed.

Some work orders have been pulled out of the country as retailers and brands look for quick production.

At the same time, the EU market was affected by high inflationary pressures due to the severe consequences of the Covid-19 pandemic and the war between Russia and Ukraine.

As a result, the purchasing power of European consumers has been eroded, even though the economies of the Eurozone are gradually recovering.

Bangladesh’s exports to the EU have been increasing due to an increased focus on high-value-added clothing items, with work orders shifting from China to Bangladesh.