Bangladesh is enjoying the benefits of the EU decision to withdraw zero-tariff from Sri Lanka, among other factors now boosting garment exports. Sri Lanka was supposed to enjoy the Generalised System of Preferences Plus (GSP+) status from the European Union, but it was withdrawn for the country's poor human rights record after its crushing of Tamil resistance.
The EU intends to make the formal move at the end of this month.
The GSP+ status gives 16 poor nations preferential access to the EU in return for strict commitments on a wide variety of social and rights issues.
Exports of readymade garments (RMG) blew past the state's target in the first two months of the current fiscal year, according to the latest data from the state-owned Export Promotion Bureau (EPB).
Bangladesh exported knitwear worth $1.6 billion against the $1.21 billion target in July and August, 31 percent up over the same period a year earlier.
During the same period, the country exported woven garments worth $1.31 billion against a target of $1.12 billion, up 17 percent from last year.
Ahsan Kabir Khan, managing director of Interfab Shirt Manufacturing Ltd, cited two reasons for the strong orders coming to Bangladesh, including recovery from the global recession.
"In the last year, buyers followed a conservative strategy in purchasing RMG products, and this year the actual business is returning," Khan said.
Second is the ongoing shift of orders from Sri Lanka, Pakistan and China to Bangladesh, he added. Orders, which were supposed to go to Sri Lanka, are now coming to Bangladesh, he said.
China has been suffering from shortages of low-wage workers, and Pakistan has faced widespread flooding, Khan said.
Part of the rise reflects the competitive level of RMG here.
"We're now taking shipments against orders which were placed earlier. This might be a cause for exceeding the target," said a Spanish buyer requesting anonymity.
But it is also true that many more international buyers are now placing orders in Bangladesh for its cheap prices, he added.
Source : The Daily Star - Bangladesh
