Bangladesh is yet to tap the full potential of the European Union and the UK markets.

It has scope for additional earnings by exporting products to these regions. One reason is that China is losing its share in the global market due to rising tensions with the west, the emerging geopolitical scenario, and the extended Covid restrictions in the former, and therefore Bangladesh can further raise its share.

China is moving away from low value-added apparels to more sophisticated ones and that also works to Bangladesh’s advantage. China’s share in the EU market in 2010 was nearly 44 per cent which declined to around 31 per cent in 2021.

In fiscal 2021-22,Bangladesh’s export earnings from the EU and the UK grew by 32 per cent. However the country faces challenges, including inefficiency in ports, complex customs procedures and lack of technological upgradation. Attracting more foreign direct investment in backward linkage, investment in non-cotton fabrics and diversification of readymade garment products can allow Bangladesh to grab a bigger share of Chinese exports.

The South Asian nation’s producers of readymade garments contribute around a fifth of its gross domestic product and more than 80 per cent of its export earnings