Comitted to PEOPLE'S RIGHT TO KNOW
Vol. 4 Num 160 Tue. November 04, 2003  
   
Business


RMG exports to Canada to double next year
Exporters hope as single country apparel fair gets huge response


Boosted by the first ever single country apparel fair held last week in Canada, Bangladesh's ready made garment (RMG) exports to the north American country will double next year, exporters hope.

"The fair received huge response from buyers and we expect exports will reach $250-300 million next year which was $144 million in 2002-03," BGMEA President Quazi Moniruzzaman told The Daily Star.

Quazi Moniruzzaman who led a 100-member business delegation to the apparel fair in Canada organised by Bangladesh Garment Manufacturers & Exporters Association (BGMEA) returned home yesterday.

BGMEA arranged the fair in cooperation with SouthAsia Enterprise Development Facility (SEDF) of the World Bank Group aiming at deriving maximum trade benefits from duty and quota free access to Canada.

Some 40 leading RMG companies took part in the fair, split into two parts -- October 27-28 in Toronto and October 30-31 in Montreal, to exhibit a wide range of products representing full spectrum of Bangladesh apparel industry.

Riding on duty and quota free access, RMG exports to Canada jumped to $102 million during January-June of 2003 which was $49 million in the corresponding period of last year, the BGMEA president said.

"This proves that Bangladesh has good prospect to further expand Canada market by utilising the trade facilities," he said.

Apart from traditional big buyers like Walmart and Sears, others specially Canada's local buyers have shown keen interest in Bangladeshi RMG items, he said.

"This was the first fair since getting duty and quota free access to Canadian market on January 1, 2003 and we are looking forward to holding regular fairs to best utilise the trade privileges there," he said.

"Though we already have business relations with Canadian buyers the fair offered a rare opportunity to Bangladeshi manufacturers to show a variety of products and make direct interactions with buyers on product quality."

Moniruzzaman said the fair has also opened a horizon for Bangladeshi expatriates to expand their business of apparel import from Bangladesh.

"We have only 14 months in hand as quota facility under multi-fibre arrangements (MFA) will cease from January 1, 2005. So, we have to utilise this period to consolidate overseas market specially where we have quota facility," he said.

"If we cannot consolidate our presence in overseas markets now it will be very hard to expand after the phasing out of quota system under WTO regime due to stiff and open competition," he predicted.

As Bangladeshi RMG products have a big market in the US, local exporters have good prospect to expand market in the neighbouring Canada due to fashion homogeneity of consumers of the two countries, the BGMEA chief said.

Inspired by the success of the fair, BGMEA will organise similar fair in Australia sometime in January next year to cash in on duty and quota free facility there.

Bangladesh RMG exports in 2002-2003 amounted to $4912 million. European Union countries are the major importers where RMG items worth $2760.78 million were exported in 2002-2003 followed by the US with $1867.62 million, Canada $144.61 million, Japan $15.

28 million and Australia $2.76 million.

Bangladesh High Commission in Canada, Trade Facilitation Office, Canada and Canadian Manufacturers and Exporters helped BGMEA to organise the exposition in Toronto and Montreal.

Bangladesh is the 10th largest apparel supplier to the US and fifth largest in the EU market. The export of apparel accounts for 75 per cent of the country's total export earnings of $6.55 billion in 2002-2003, according to Export Promotion Bureau.