The USA marked 5.12 per cent growth in its value-wise import during January to February 2019 period as it imported apparel worth US $ 14.22 billion as against US $ 13.52 billion in the corresponding period of prior year. Interestingly, all the major apparel exporting destinations China, Bangladesh, India and Vietnam grew in their respective exports to the USA but China’s growth was the lowest among all.
With 3.12 per cent surge on Y-o-Y basis, China exported apparels to the USA valued at US $ 4,532.57 million in the review period and topped the list, despite the fact that it grew the least among the Asian countries.
On the other hand, the second largest exporter to the USA, Vietnam, shipped US $ 2,299.62 million worth of apparels to the country, growing 11.27 per cent on the yearly note.
Bangladesh and India exported apparels worth US $ 1,038.56 million and US $ 800.30 million to the USA, respectively, with 10.96 per cent and 8.51 per cent growth on Y-o-Y basis.
The buyers somehow refrained themselves from placing huge quantities of orders to China’s apparel manufacturing units. This changed behaviour of the retailers was probably due to the possible taxes that were supposed to be levied onto the Chinese goods that go in the US territory with effect from January 1st 2019. Sensing the incoming tax regime, buyers already shifted their base from China to other countries which benefitted India, Bangladesh and Vietnam, as indicated by the figures.
Another aspect that emerged after analysing the data is India’s rise as compared to Indonesia. It’s worth mentioning here that India currently holds 5th rank in apparel exporting destinations tally to the USA, while Indonesia stands at 4th spot with US $ 800 million export value. The gap between the export values of these countries was US $ 108 million in Jan.-Feb. ’18 period which compressed to just US $ 46 million in the same period of 2019. It is expected India will surpass Indonesia in another 4 to 5 months, grabbing 4th spot in the tally.
