Bangladesh’s woven garment exports are likely to face strict rules-of-origin (RoO) requirements in its major destinations, including the European Union, after Bangladesh's LDC graduation. Exporters may need to comply with double-transformation requirement irrespective of their access to GSP or GSP-plus schemes.

Bangladesh is largely dependent on imported fabrics for woven garment manufacturing as local spinners can meet 35-40 per cent of demand of woven exporters.

Absence of infrastructure, mainly shortage of gas, required policy supports and financial matters, is discouraging entrepreneurs from making fresh investment in woven fabrics manufacturing, say experts

The share of woven garments to the country's total exports declined by at 37.40 per cent in the last fiscal while it further dipped to 35.38 per cent during the first half of the current fiscal year, 2021-22, Bangladesh Bank quarterly review shows.

MD ShahidullahAzim, Vice President, BGMEAadds, the decline in exports can be attributed to a decline in demand during the pandemic as most people stayed at home.