The ongoing global trade war among economic powerhouses, while causing financial strain for some nations, has unlocked new opportunities for others, including Bangladesh.
Economists suggest that the United States’ tariff impositions on imports from China and other countries have yielded positive outcomes for Bangladesh’s export sector.
With an additional 10% tariff levied on Chinese goods, US buyers have started diverting their sourcing strategies, creating fresh prospects for Bangladeshi entrepreneurs.
The impact of this shift is already visible. In January this year, Bangladesh’s apparel exports to the US exceeded $800 million, reflecting a robust 45.93% growth compared to the same period last year.
Industry analysts interpret this surge as a sign of Bangladesh’s strengthening position in the US market.
Official data reveals that in January 2023, Bangladeshi exporters had shipped garments worth $547.9 million to the US.
What makes this growth even more remarkable is that it surpasses the export performances of competing nations such as China, Vietnam, Indonesia, and India.
The resurgence of Bangladesh’s market foothold in the US, after a prolonged struggle, is seen as a significant opportunity for the country’s garment sector.
According to updated statistics from the US Department of Commerce’s Office of Textiles and Apparel (OTEXA), American importers sourced $7.2 billion worth of ready-made garments in January this year, marking a 19.4% increase from $6.03 billion in the same period last year.
Although 2024 may not conclude with extraordinary growth, Bangladesh’s apparel sector has regained its positive trajectory.
Last year, total garment exports to the US reached $7.34 billion, registering a modest 0.75% increase from 2023.
The US market had previously suffered a 25% decline in Bangladeshi garment imports, dropping to $7.29 billion in 2023 due to the economic repercussions of the Russia-Ukraine war.
Trade experts point out that soon after assuming office, US President Donald Trump imposed additional tariffs on imports from Canada, Mexico, and China, reshaping market dynamics and presenting new opportunities for alternative sourcing destinations.
With an extra 10% duty imposed on Chinese products, US buyers are gradually shifting their orders elsewhere, potentially increasing demand for Bangladeshi apparel.
Additionally, investors who are looking to relocate their manufacturing units away from China may consider Bangladesh as a viable alternative.
OTEXA data further highlights that in January, China remained the largest garment exporter to the US with shipments worth $1.6 billion, followed by Vietnam at $1.44 billion.
However, Bangladesh recorded a significantly higher growth rate, reinforcing its market potential in the US.
Industry leaders attribute this momentum to Bangladesh’s cost-effective production capabilities and skilled workforce, which have made the country an increasingly attractive sourcing hub for US buyers.
They assert that if the government ensures uninterrupted gas and electricity supplies, Bangladesh could achieve even greater growth and solidify its position as the second-largest apparel exporter to the US.
Another key factor contributing to Bangladesh’s export expansion is the trust of US buyers in the country’s reliability and product quality.
Over the past few years, Bangladeshi garment factories have enhanced their production environments in compliance with international standards, bolstered workforce efficiency, integrated advanced technologies, and embraced sustainable manufacturing practices.
Stronger collaborations with global brands have further amplified Bangladesh’s competitiveness.
Experts stress that to consolidate its standing in the export market, Bangladesh must focus on infrastructure development, guarantee uninterrupted power and energy supplies, diversify its production range, explore new markets, and shift towards manufacturing high-value apparel.
The sustained positive growth in the US market presents a beacon of hope for Bangladesh’s garment sector, signalling prospects of even greater success in the coming years.
