According to the US Census Bureau, exports from Bangladesh decreased by 3.28 percent in January-October period of 2003 over the same period of 2002.

The falling trend in exports to the US had begun after year 2000.

The exports largely depend on the US quota facilities, specially for ready made garment (RMG), the largest foreign exchange earning sector. The US is a major buyer of Bangladesh's RMG products.

Moreover, with only 11 months left for the start of the quota-free regime, Bangladesh is losing its competitiveness and facing stiff competition with countries like China, India and Thailand in retaining the market in the US.

Dundas C McCullough, political, economic and communications officer of US embassy in Dhaka, has explained the reasons behind the declining exports.

"In the changing global economic order, US businesses are shifting investment to the most competitive destinations. The investment pullout also contributes to the export decline," he told a press conference on US Trade Show 2004 in Dhaka yesterday.

China, India and Thailand have emerged as the most competitive countries in the region in terms of cost of business and infrastructure facility, which prompts US businesses to move there, he said.

"High scale of corruption, weak enforcement of intellectual property rights and dillydallying in taking policy decision also lead to the situation," he said.

The US is the biggest export destination of Bangladeshi products with exports peaking at $2,417 million in 2000. But the following year it dipped to $2,358 million and marked a further decline to reach $2,134 million in 2002.

In the first 10 months of 2003, Bangladesh exported goods worth $1845 million compared to $1907 million in the corresponding period of the previous year.

A leading garment exporter said the US importers are now preferring the countries, which have signed or are negotiating for free trade agreements (FTAs) with the US, to take the duty exemption facility under such deals.

Annisul Huq, who will take over as president of Bangladesh Garment Manufacturers & Exporters Association (BGMEA) in March this year, said exports from Bangladesh will further plunge when the quota facility will end on December 31, 2004.

"The government should seriously bargain with the US for preferential trade arrangements after the phaseout of quota regime to overcome the challenges," he told the Daily Star urging the government to wake up.

President of American Chamber of Commerce in Bangladesh Aftab ul Islam said infrastructure dearth in ports is causing additional cost to trade which discourage US importers to place order in Bangladesh.

"The government is not upgrading and modernising the port capacity and also discouraging private sector ports," he said.