RMG traders exploring new mkts

Shah Alam Nur Readymade garment (RMG) traders have reinforced drive to explore new destinations for exports to expand the existing market, industry leaders said. As part of the move, leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) are now visiting Japan, Russia and Latin American nations. A 13-member delegation led by BGMEA President Shafiul Islam Mohiuddin has started visiting Argentina, Colombia, Brazil and Peru for the new market search. "We are now fully dependent on the US and the European Union countries for RMG export which might throw us to a risky situation if any recession or something like that occurs any time," Vice-President of BGMEA Siddiqur Rahman told the FE. "We are now very serious about searching new markets in different destinations of the world," Rahman said adding that they have already visited several countries and received positive response from them. "We have invited buyers of those countries to visit Bangladeshi apparel industry and compare our RMG goods with those of other countries. Many of them have already made their visits to Bangladesh accordingly." Mr Rahman also said, "In the meantime, we have received a good number of orders from the new destinations." Managing Director of Shanta Apparel Ltd Khondoker Jamil Uddin has expressed his dismay that they had to pay a high tariff to export RMG products to Brazil, which is a big barrier to the local exporters and has urged the authority to negotiate with the emerging market to lower import duty. He said, "We are now having discussion with many businessmen in Mexico and Colombia and I am hopeful that we can find out a big market there." Mr Jamil said, "Russia can be a big market for us but due to duty barrier so far our export remains insignificant. Recently, the barriers have been somewhat lowered by the Russian authority, so we are hopeful about making a good export to the new destination." Among the European Union (EU) countries, Germany alone has become a rising market for Bangladesh's RMG in recent years, next to the largest market in the USA, according to apparel exporters. BGMEA data show, Bangladesh made more than US$ 10,519.84 million apparel export to the largest economy of the EU in the last fiscal year (FY 2010-11), a sharp rise of 46 per cent growth. Meantime, Bangladesh exported about $ 4,625.16 million worth of RMG products to USA during the 2010-11 fiscal, registering a growth of 27 per cent compared to the same period of FY 2009-10. "Germany ranked top among 26 European countries by importing record quantity of RMG goods from us last year," said Abdus Salam Murshedy, Managing Director of the Envoy Group, a large RMG exporter of Bangladesh. RMG exports to the UK rose by 39 per cent to $ 1.7 billion in FY 2010-11 from $ 1.2 billion a year ago. At the same time, import of RMG products by France grew by 47 per cent to $ 1.4 billion. Data also shows that among the new and emerging markets, value of the country's RMG exports stood at $ 247 million in Japan, $ 192 million in Australia, $ 94 million in Brazil, $ 81 million in Mexico, $ 52 million in China, $ 51.86 million in Russia, $ 48 million in South Africa, $ 47 million in Korea Republic, $ 35.94 million in India and $ 12.93 million in Chile. In Canada, Bangladesh's RMG export rose to $ 894 million in FY 2010-11, from $595 million in FY 2009-10.