Ukraine war, inflation cut Bangladesh’s export to Germany: German envoy
The prolong in Russia-Ukraine war, energy crisis and increasing inflation are likely to rein in Bangladesh's present export momentum to Germany in the days to come, German Ambassador to Bangladesh Achim Troster said.
Inflation in Germany has recently hit a 50-year high of 8 per cent, according to the new figures from the Federal Statistical Office of Germany.
Inflation along with increasing energy price will reduce the purchasing power of the German consumers and prompt them to spend less in buying consumer goods like readymade garments and leather, Troster said.
Amid the Russia-Ukraine war, Bangladesh's export earnings in May 2022 hit a nine-month low to $3.83 billion, 1.64 per cent lower than that of the earnings target of $3.89 billion set by the government, he said.
"Bilateral trade between Germany and Bangladesh amounts to over $7 billion, with Germany importing over $6 billion worth products, mostly textile. Germany is Bangladesh's second largest export market after US."
The envoy spoke at an event on "National Budget 2022- Implications on Trade and Commerce" organised by Bangladesh German Chamber of Commerce and Industry (BGCCI) at Sheraton hotel in Dhaka on June 29.
In 2020, Germany imported $6.53 billion and exported only $588 million worth of goods to Bangladesh, he said in a statement from the BGCCI.
Garment exports from Bangladesh to Germany stood at $5.95 billion in FY21 and to the US market $6.97 billion.
Germany is the largest trading partner of Bangladesh in Europe and the second largest globally, he said.
He said Bangladeshi exporters need to prepare to face the new German Supply Chain Act, which will come into effect on January 1, 2023, primarily focusing on human rights and environmental issues.
Bangladesh must ensure human rights, rule of law, sound labour and environment standards to enjoy trade privileges in the German market, he added.
Mosharraf Hossain Bhuiyan, Bangladeshi ambassador in Germany, suggested for setting up an international standard training institute in Bangladesh for the orientation of Bangladeshi nationals about the new laws of Germany.