Apparel Online India Magazine October 1st Issue 2018 | Page 47

BEYOND INDIA
Bangladesh can double its trade in
South Asia: WB report
World’s second biggest apparel
manufacturer and exporter
Bangladesh has the potential to
more than double its trade with
South Asian nations by exploring
intra-regional trade, the World
Bank has said in its report
published recently. The global
lender, in its report said, intra-
regional trade in South Asia, which
remains one of the lowest in the
world, has the potential to grow up
to three times from US $ 23 billion
now, just by removing man-made
barriers like tariffs and distrust.
The report titled ‘A Glass Half Full:
The Promise of Regional Trade in
South Asia’ was published jointly
by WB and the Policy Research
Institute of Bangladesh. The
report was launched during an
event at Dhaka. Bangladesh’s
Finance Minister AMA Muhith was
present at the programme. Trade
within the South Asian region
accounts for about 5 per cent of
the region’s total trade, the report
says, dubbing it whimsically low
against 50 per cent in East Asia
and the Pacific. It said the large
gaps between actual and potential
trade arise because countries in
the region have erected barriers
against each other. The World
Bank identified four critical
(From left) – Sadiq Ahmed, Vice Chairman of PRI; Qimiao Fan, Country Director of the WB for Bangladesh, Bhutan, and Nepal; AMA Muhith, Finance Minister;
Sanjay Kathuria, WB Lead Economist; and Zaidi Sattar, Chairman of Organising Institution Policy Research Institute
barriers towards intra-regional
trade: tariffs and para tariffs, real
and perceived non­tariff barriers,
connectivity costs, and a broader
trust deficit. Sanjay Kathuria,
World Bank’s Lead Economist and
Lead Author of the report said,
“Trust between countries is in
short supply in South Asia.” Zaidi
Sattar, Chairman of Organising
Institution Policy Research
Institute, said South Asia has
the potential to stimulate rapid
growth and economic prosperity
in the region and contribute to
pulling millions out of poverty.
“The region’s trade with the rest
of the world is leaping big for
the last quarter century. But, the
intra-regional trade declined.”
The intra-regional trade has come
down to 2.5 per cent from 5 per
cent, posted before the signing of
the South Asian Free Trade Area
(SAFTA) agreement in 2004, said
Sattar citing a PRI research.
The WB said the costs of trade are
much higher within South Asia
compared with other regions. The
report stated, “The average tariff
in South Asia is more than double
the world’s average. South Asian
countries have greater protection
for imports from the region than
from the rest of the world.” The
report said countries impose high
para-tariffs and more than one-
third of the intraregional trade falls
under sensitive lists, comprising
goods not included under the
SAFTA’s tariff liberalisation. In
case of Bangladesh, nearly 46
per cent of the country’s imports
from the region fall under the
sensitive lists.
As Mexico falls, Bangladesh, Vietnam and Cambodia
gain in denim apparel export to US
US noted a decent growth in
its blue denim apparel imports
during January to July 2018
period. Value-wise, the country
imported US $ 2,102.87 million
worth of denim apparels
marking 8.22 per cent growth
on the yearly note, while in
volume terms, USA imported
22.08 million dozen denim
apparels with 3 per cent Y-o-Y
growth. According to OTEXA,
China remained the top exporter
in the segment with US $ 520.87
million (up by 2.89 per cent)
worth of denim apparel exports
to US. On the other hand, Mexico
fell by 1.85 per cent to US $ 432.14
million in the review period,
providing opportunities to both
Bangladesh and Vietnam in
the denim apparel segment. As
Mexico could not capitalise on its
close proximity as well as rising
denim apparel import by USA,
Bangladesh grabbed the shift
and rose by 16.30 per cent on
the yearly note and shipped US
$ 311.91 million worth of denim
apparels to US.
Vietnam too noted massive
surge of 37.84 per cent
and export value of denim
apparels to US stood at US
$ 148.67 million. Pakistan,
one of the biggest denim
exporters in the world,
too jumped 18.91 per cent to
ship US $ 137.11 million denim
apparels to USA. Interestingly,
Cambodia is another country
which might dent the denim
export value of its competitors
in near future, as noting a
stellar surge of 32.22 per
cent, Cambodia clocked US $
67.22 million in denim apparel
export to US.
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