Bangladesh apparel exports shipment to Chile, a South American country, has seen a 34.10% to $$79 million rise in the last fiscal year, thanks to duty-free market access trade facilities for Bangladeshi goods.
According to Export Promotion Bureau (EPB) data, in FY18 Bangladesh, the second largest exporter to the global market has earned $79 million, up by 34.10%, which was $59 million in the same period a year ago.
However, in the July-September period of the current fiscal year, Bangladesh has earned $39 million export earnings apparel goods to Chile, which is higher compared to $28 million in the same period last year.
Meanwhile, the overall exports earnings of the country stood at $86.28 million, up by 33.32%, which was $64.72 million in the same period last year.
Along with the government efforts, manufacturers are also trying to diversify the export market. Since the manufacturers are enjoying duty-free market access to Chile, they went for a massive drive to grab more market share.
Talking to Textile Today, apparel sector people and trade analysts attributed duty-free market access to Chile for the sharp rise in export earnings from the RMG sector, which contributes over 83% to national exports.
Since, January 2015, the government of Chile is providing Bangladesh duty-free access of Bangladeshi products to its markets. Before the duty-free trade facilities, Bangladesh had to pay 17% duty.
Data showed exports earnings from the South American country started to post healthy growth after the duty-free market access to the country and it continued as of last month.
“As per our bilateral decision, the government of Chile is providing Bangladesh duty-free market access to its market. As a result, Bangladesh exports to the country is increasing sharply,” Commerce Minister Tofail Ahmed told the Textile Today.
As a part of the government’s market diversification program, Bangladesh is trying to negotiate with other countries to avail duty-free market access to increase export earnings, he said.
On the other hand, the government is providing 4% cash incentives against the exports in the non-traditional market, which also is helping to increase exports earnings, he added.
“Along with the government efforts, manufacturers are also trying to diversify the export market. Since the manufacturers are enjoying duty-free market access to Chile, they went for a massive drive to grab more market share,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) senior vice-president Faruque Hassan said the Textile Today.
As Bangladesh is providing quality apparel goods, in the next year, apparel exports to the Chile market will see a very sharp growth, said Hassan.