Export to Europe posts 6.3 per cent growth

Bangladesh’s export earnings from the recession-hit Europe amounted to 5.8 billion Euros in 2009, a growth of 6.3 per cent compared to exports during the previous year, according to a latest report on external trade of the European Commission.

The overall export growth rate in 2008 was 6.7 per cent.

Despite growth of 7.9 per cent in apparels export which constitute 88 per cent of Bangladesh’s export to Europe, overall growth was less in 2009 because of massive fall in other sectors like shrimp and leather products.

Apparel exporters are, however, worried over ongoing energy crisis and growing competitiveness of other countries vying for more shares in European market following the easing of economic recession.

Europe is the market destination for around two-third of the entire export sales of Bangladesh.

In 2009, Bangladesh’s clothing shipments to Europe amounted to more than 5.1 billion Euros.

The EC Report shows that, being the third largest supplier of clothing to Europe, Bangladesh’s shipments there increased higher than other competitors.

The 2009 apparel shipment growth to Europe from China, the number one supplier, was at only 0.3 per cent, Turkey, the second, at -11.4 per cent, India, forth, 4.5 per cent, and Tunisia, the fifth, at -12.8 per cent.

‘It is true we achieved growth higher than others, but it is not adequate for Bangladesh if previous growths are considered,’ said Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association

Mentioning slower growths in the last months of 2009, Fazlul Hoque said exporters from China, Vietnam and India after enhancing their competitiveness are fighting Bangladesh.

Bangladesh Garment Manufacturers and Exporters Association president Abdus Salam Murshedy said the shipment growth to Europe in 2009 was very little in comparison to the huge expansion in production capacity of the Bangladesh’s apparel industry in the previous two years.
He said that such growth was achieved by the local exporters by accepting lower prices offered by importers. ‘Industry is bleeding because of energy crisis and other infrastructural backwardness. The cost of production in Bangladesh has increased whereas suppliers in other countries received incentives from their respective governments and offered lower price to importers,’ he added.

Trade analyst professor Mustafizur Rahman said the fall in exports of shrimps, finished leather, footwear and other non-textile products from Bangladesh mainly reduced the overall export growth. ‘But the apparel exports growth is really satisfactory.’

Rahman, the executive director of the think-tank Centre for Policy Dialogue, hoped that growth of EU-Bangladesh trade in 2010 should at least be similar to that in 2009.

‘Europe is recovering from recession with a fresh rise of demand for merchandises. So, Bangladesh’s export front should see a rational opportunity there,’ he said.

Agreeing that the shortage in power and gas supply was affecting the Bangladeshi manufacturers, Mustafiz hoped, ‘Like previous years, Bangladeshi private sector industries will be resilient in overcoming such crisis with their own capacities.’

Contributing 0.5 per cent to external trade of the European Union in 2009, Bangladesh ranked 37th among its global trade partners. Exports from Bangladesh constituted 91.3 per cent in the bilateral trade.

The European Commission said in 2009, Bangladesh’s imports from Europe amounted at 1.09 billion Euros which was 5.5 per cent less than that of the previous year.

Local industrialists said due to less expansion and less production in Bangladeshi export industries, the European exporters of chemicals and machinery found the market here sluggish last year.

Source: New Age