Despite graduating from LDC category, Bangladesh hopes to get the GSP+ privilege.

TapanKantiGhosh, Commerce Secretary said, Germany will continue to give GSP+ privilege to Bangladesh as it moves out of the LDC status in 2026.Ghosh was addressing a ‘Corporate Due Diligence Obligations for the Prevention of Human Rights Violations in Supply Chain’ in Dhaka by the Bangladesh Employers’ Federation (BEF) and Metropolitan Chamber of Commerce and Industry (MCCI).

The German Act will not be directly applicable to Bangladesh, it would become a factor to address when its components were incorporated in the GSP+ incentive, he added.

Germany recently enacted an act on corporate due diligence obligations in supply chains even if the act will come into effect in 2023.

The World Trade Organization (WTO) has revised its outlook for world trade volume in goods to 3 per cent in 2022 from the previous projection of 4.7 per cent in October. The outlook is marked by uncertainties caused by the Russia-Ukraine war and COVID-led economic downturn, says Ngozi Okonjo-Iweala, Director General, WTO. A strong consumer demand led to world trade volume growing by 9.8 per cent last year. However, this year, the double whammy of the pandemic and the war has once again lowered growth expectations, he adds.

Lockdowns in China are once again disrupting seaborne trade leading to shortages of manufacturing inputs and higher inflation, he adds. Given this volatile situation, WTO economists estimate merchandise trade volume in 2022 will either sink to 0.5 per cent or grow to 5.5 per cent.

As per a Women’s Wear Daily report, global trade value increased 26 per cent to $22.4 trillion in 2022, with China’s trade value growing 30 per cent to $3.36 trillion, followed by the US with 23 per cent growth to $1.75 trillion and Germany with an 18 per cent gain to $1.63 trillion. The value of apparel exports increased by 21 per cent to $550 billion in 2021, adds Coleman Nee, Senior WTO economist. The overall value of apparel trade was above the 2019 pre-COVID-19 crisis levels. China registered a 24 per cent increase to $176 billion, he adds.

Similarly, exports of Bangladesh and Vietnam surged by around 24 per cent and 11 per cent, respectively with their shipments values exceeding $30 billion each. Other apparel exporters whose exports surged last year included Turkey whose exports surged by 22 per cent to $18.7 billion; Cambodia, whose exports increased 8 per cent to $8 billion; India which reported a 24 per cent surge in exports to $16.1 billion and Indonesia whose exports increased 23 per cent to $9.3 billion. The exports of Sri Lanka, Egypt, Jordan, Mexico, Canada, El Salvador, Nicaragua, Guatemala and Peru, also grew by double digits.

In contrast, apparel exporters that posted double-digit contractions in 2021 included sanctions-hit Myanmar (Burma), and the United Kingdom.

The Tiruppur Exporters' Association (TEA) has urged an additional 20 per cent loan support for the labor intensive MSME driven garment industries under the Emergency Credit Line Guarantee Scheme (ECLGS). This loan support will help MSMEs that make up majority of RMG industry and are currently facing liquidity crisis, owning to a surge in inputs costs, says Raja Shanmugam, President. The ongoing economic crisis in Sri Lanka can boost India’s textile exports if the government resolves current problems facing the industry, adds Shanmugham.

The surge in cotton and yarn prices places the Indian textile industry in a disadvantageous position. A level playing field by lifting the import duty on cotton enables it to double turnover from the Tiruppur industry by 2024.

Vietnam’s textile and garment exports increased 22.5 per cent in Q1 FY22 to $8.84 billion. As per reports, many garment and textile companies in Vietnam were impacted by labor shortages during the pandemic which disrupted production and business activities in the country. Around 1,719 employees of Hoa Tho Textile and Garment JSC tested positive last month, says Tran Tuong Anh, Deputy Director-General. The company encountered many difficulties in arranging production plans, compelling it to reschedule delivery times, rearrange production plans and prioritize urgent orders, he adds.

The company also had to arrange different workplaces and canteen for the infected employees, he adds. 8-3 Textile Co also struggled with labour shortages during the COVID outbreak. The company had to rotate workers’ shift to ensure continuation in production and business activities.

Aligro JSC had to ensure its companies social and welfare interests to make them feel secure, adds Hoang Van Linh, Chairman, Hao Tho Textile and Garment JSC directed its infected workers to immediately stop work. It also provided them finance and meals post their return to factories. From a Zero COVID policy, Vietnam has changed its strategy to a safe and flexible adaption and effective control of the pandemic. The textile and garment industry has received orders till end of the year and is expected to earn $43 billion in exports this year.