Bangladesh's exports of apparel items to the European Union remained sluggish in fiscal 2016-17. Exports grew only 3.49 per cent year-on-year in fiscal 2016-17 while the growth was 11.66 per cent in the year before. The Brexit in June last year was mainly responsible for the slowdown in garment exports to the EU, where nearly 60 per cent of garment products are shipped in a year.

Last fiscal, garment exports to the UK declined 5.97 per cent. The year before, they registered a 21.37 per cent year-on-year growth rate. The UK is the third largest garment export destination for Bangladesh. However, it has been suffering from high inflation stemming from the free fall of the pound against the euro and the dollar.

The country’s garment exports to some major EU members increased slightly between three and five per cent year-on-year. Bangladesh logged in $34.83 billion in export receipts for fiscal 2016-17, up 1.69 per cent year-on-year. Had there been favorable exchange rates, earnings could have been at least $3 billion more as volume of shipments increased. But the receipts belied it. Competing countries like China, Vietnam, Cambodia and India can supply to retailers and brands at a shorter lead time but Bangladesh is still lagging behind due to lower productivity, port congestion and poor infrastructure.