The US is the second major destination of Bangladeshi garment products after the EU. Bangladesh’s earnings from export of readymade garments to the US were up 2.85 per cent in fiscal year 2014-15 compared to the previous year. But there has been continuous fall in growth in the last two years. In financial year 2013-14 readymade garment exports to the US rose by 2.9 per cent, sharply down from 10.31 per cent in 2012-13.

Low demand, increased competition, political unrest and rise of production cost due to implementation of factory compliance are responsible for the slow-down. Buyers could not come to Bangladesh to place orders and further business negotiations because of the political turmoil. It hampered the export growth to a major destination.

The new challenges of competition from countries like Vietnam and Cambodia have caused a slowdown in export growth. Orders are being shifted to new competitors like Vietnam which can avail of the duty-free facility to the US market after signing the much anticipated TPP deal.

Another reason is increased production cost due to the compliance process. Although production costs have risen, prices haven’t, making Bangladesh less competitive in the global market. Myanmar, the emerging exporter of readymade garments to the US, has posted a 123 per cent growth in the first four months of this year.