In the last fiscal year, Bangladesh’s exports to China experienced a significant decline, reaching a three-year low of US $ 677 million. Entrepreneurs faced challenges in capitalising on the duty benefits offered by Beijing. Moreover, if we exclude the earnings from 2019-20, a period heavily impacted by the global Covid-19 pandemic, the export receipts for 2022-23 would be the lowest in a decade, according to data from the Export Promotion Bureau (EPB).
The hindrances to boosting exports to the world’s second-largest economy include a restricted range of products in the export basket and the absence of intermediate goods and technology items.
Despite the fact that the tariff schedule of this economy grants duty-free access to 98 per cent of listed items, Bangladesh’s shipment in FY ’23 declined by 1 per cent, amounting to US $ 683 million, marking the lowest figure since FY ’20. It was during FY ’20 that the pandemic adversely impacted Bangladesh, causing exports to reach US $ 600 million for that year.
Approximately 60 per cent of Bangladesh’s earnings come from the garments and textiles sector, with readymade garments alone constituting 85 per cent of the country’s total export receipts.
Al Mamun Mridha, the secretary general of the Bangladesh China Chamber of Commerce and Industry, pointed out that garments are the primary export products for Bangladesh. However, China is also involved in the manufacturing of these products and imports apparel worth US $ 10-US $ 12 billion.
