Bangladesh’s apparel exports to the EU increased by 16 per cent during the first half of the current fiscal year compared to the same period of the previous fiscal.

Now the country’s manufacturers have asked for an additional two per cent cash incentives on export of garment products to Sweden and Poland. Currently, garment exporters enjoy four per cent cash incentives if they export goods to non-traditional markets, excluding the EU, the UK, Canada and the US. Besides, they enjoy existing additional cash incentives for shipments to the countries under the EU block.But apparel exporters to Sweden and Poland are not getting such special benefits unlike exporters to other EU countries.

Currently, garment exporters are facing difficulties due to the Russia-Ukraine war and its impact is now visible. Prices of raw materials of the sector have increased due to higher inflation in different countries, including the US and the UK.

Currently, the EU region is considered the major market for Bangladesh’s readymade garment items.Bangladesh’s apparel exports to the European Union grew by 16 per cent during the first half of the fiscal 2022-23. Garment exports to Germany grew three per cent year on year. Exports to Spain and France grew by 17 per cent and 33 per cent respectively during the last six months.