Bangladesh RMG ex­port to Turkey tum­bles 31.78% in FY 2017-18

Apparel Online - - Trade Statistics -

Bangladesh is con­tin­u­ously not­ing a de­cline in RMG ex­port earn­ings from Turkey which, at one point of time, was one of the ma­jor non-tra­di­tional mar­kets for the coun­try. In FY 2017-18, Bangladesh ex­ported ap­par­els worth US $ 260.16 mil­lion, down mas­sively by 31.78 per cent from the last year when it clocked US $ 381.37 mil­lion.

Knitwear ex­ports fell to US $ 192.71 mil­lion in the year that ended on 30th June 2018 from US $ 367.80 mil­lion in the pre­vi­ous year. On the other hand, wo­ven gar­ment ex­ports tum­bled to US $ 77.91 mil­lion in FY 2017-18 from US $ 108.92 mil­lion in FY 2016-17. The fall can be at­trib­uted to the safe­guard duty (17%) im­posed by Turkey on ap­parel im­ports from the least de­vel­oped coun­tries, in­clud­ing Bangladesh. The duty was first levied in 2011 and since then the ap­parel ex­ports from Bangladesh to Turkey has been fluc­tu­at­ing.

Fol­low­ing the im­po­si­tion of safe­guard duty, RMG ex­ports fell to US $ 488.08 mil­lion in FY 2014-15 from US $ 622.37 mil­lion in FY 2013-14 and fur­ther de­clined to US $ 460.29 mil­lion FY 2015-16.

An­other rea­son be­hind the sharp down­fall is that Turkey used to im­port ba­sic prod­ucts more from Bangladesh which re-ex­ported them in other parts of the world. But, over a year now, Bangladesh has con­cen­trated in cre­at­ing va­ri­ety in fash­ion and has de­vel­oped the qual­ity of its RMG prod­ucts to con­sol­i­date its stand in the world fash­ion mar­ket.

More­over, since Turkey’s fo­cus is more on high-end gar­ments to cater to the do­mes­tic de­mand, its pre­ferred part­ner is now EU which gives duty-free ac­cess to Turkey as well as it’s lo­cated in close prox­im­ity to Turkey, there­fore, EU is pre­ferred over Bangladesh for the ob­vi­ous rea­son. How­ever, ac­cord­ing to Bangladesh’s ex­port in­dus­try ex­perts, the first pri­or­ity of the coun­try’s Gov­ern­ment should be to ini­ti­ate a bi­lat­eral FTA with Turkey to avail pref­er­en­tial mar­ket ac­cess as they be­lieve Bangladesh will lose the re­main­ing marker share in Turkey if an agree­ment is not signed.

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