Bangladesh’s garment exports to non-traditional markets increased 3.4 per cent year-on-year in July to December of the current fiscal year. For Bangladesh, non-traditional markets are markets other than the European Union, US and Canada.
The newer markets mean a lot for the country, not just for sustaining the huge industry and the employment it provides to millions, but also for maintaining its robust contribution to the economy. Bangladesh’s largest export destination is Japan. The other markets that have demonstrated good prospects include Australia, China, Turkey and Russia.
Exporters were more focused on bulk orders from their known markets - the US and the EU. But prospects of exporting to newer and non-traditional markets on an increased scale are equally rewarding. One factor that has helped this is the cash incentive given to exporters. Another is market exploration efforts. And some importing countries have simplified the Rules of Origin.
Bangladesh began giving cash incentives on garment exports to emerging markets to offset the fallout from the financial meltdown the world faced in 2007. These cash incentives on export to non-traditional markets drove growth over the years. The cash incentive for apparel exporters was five per cent in 2009-10, four per cent in 2010-11 and two per cent in 2011-12.