Bangladesh now looks to BRICS nations to further boost apparel export through exploring the new markets in the emerging bloc cutting across continents, official sources said.
Dhaka has agreed in principle to be member of BRICS-Brazil, Russia, India, China and South Africa.
Apparel-makers consider the world's five emerging economies in the grouping as very potential market for readymade garment (RMG) export.
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Atiqul Islam in a recent letter to the ministry of commerce (MoC) said every year apparel imports by BRICS nations have been on the rise. The main cause is: cost of production in the BRICS countries rose significantly following the flourishing of their economy.
He thinks Bangladesh can grab the rising markets of Brazil, Russia, India, China and South Africa if some bottlenecks are removed.
Presently, Bangladesh exports apparels to China and India with duty-free facility but export to Russia and Brazil is hindered because of walls of 'high duty'.
"Russia joined in the World Trade Organisation in 2011. As one of the least- developed countries, Bangladesh has the scope to get tariff preference in Russia. The government needs to take proper steps to avail the opportunity," he said.
He also wrote that Bangladesh's export to China and India faces some roadblocks. Weakness in land-port operations and other infrastructural establishments, laboratory accreditation, non-cooperation in visa issuance, and some non-tariff and para-tariff barriers are among the problems.
According to BGMEA officials RMG exports to non-traditional markets fetched US$3.603 billion in 2013-14 fiscal year. The quantum is 14.71 per cent of the total garment exports.
In the fiscal year 2008-09, the apparel export to non-traditional markets amounted to $849 million or 6.88 per cent of the total.
The BGMEA leader thinks that apparel export to the non-traditional markets has increased significantly due to the facilities the government ensured.
The government raised cash incentives for exporting clothing items to new markets, other than the US, Canada and the European Union, to 3.0 per cent this fiscal year from 2.0 per cent to encourage exporters.
Mr Islam emphasised the need for removing all types of tariff and non-tariff barriers to help further raise export to non-traditional markets.
Vice-president of BGMEA Shahidullah Azim told the FE Friday that demand of Bangladesh-made apparels has been on an upturn both on traditional and non-traditional markets.
"Alongside demand from buyers, infrastructural support is very much needed to raise export," he said.
The industry leader listed the prerequisites for boosting merchandise shipments: dedicated road for carrying export containers, inland and deep-sea ports and other infrastructural facilities.
Mr Azim said Bangladesh's apparel export to Brazil and India has been increasing. "China has some $338 billion apparel market. Our export will increase by nearly $18 billion if even we can grab only 5.0 per cent of its market."
He said Bangladesh's apparel export to Russia is being done in scattered way. "Russia also has a big apparel market which needs to be explored."
Country's total apparel exports fetched $24.5 billion in fiscal year 2013-14, up from $21.5 billion a year back.
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