After a short spell of stagnation due to global recession, Bangladesh's exports of RMG products is surging again to the US market.
More importantly, Bangladesh is outpacing all competing countries as far as RMG export to the US is concerned.
According to a Commerce Wing report of Bangladesh Embassy in Washington DC, apparel exports rose to US$409 million in August from $289 million in the same month a year ago, marking a spectacular 41.5 percent growth.
Compared to Bangladesh's August growth, RMG exports from China grew by 28.81 percent, Vietnam by 24.59 percent, Indonesia by 23.84 percent, India by 13.12 percent and Cambodia by 27.38 percent, as per data released by US International Trade Commission.
Bangladesh is currently the 4th largest apparel exporting country to the US market, trailing behind only China, Vietnam and Indonesia. Not long ago, Mexico's apparel exports were significantly higher than Bangladesh's, which is reversed in the recent months.
The rising production cost of making apparels in the competing countries and also recent tug of war between US and China over undervalued currency, along with other factors, are contributing to higher level of sourcing by the US-based importers from Bangladesh.
With the recent passing of a bill in the US House of Representative Currency Reform Fair Trade Act, future imposition of countervailing tariffs against Chinese imports is very likely, giving a good opportunity for Bangladesh exporters to grab even a higher slice in the US market.