Entrepreneurs in the garment sector of Bangladesh are optimistic about on capitalizing the expected reduction in China’s garment exports to Australia, as they have successfully done in Europe and the United States.
They have set eyes on doubling its garment exports to Australia in the next five years. They termed Australia, as of the largest and most potential markets for the Bangladeshi apparel industry. They are hopeful even though Bangladesh would graduate out of the least developed country status in 2026 which will impact its duty-free access but hope that preferential trade benefits for apparel will remain intact.
Fiscal 2022-23, was a good year for Bangladesh’s readymade garment (RMG) exports to Australia which jumped by 42 percent to reach $1.2 billion. The performance was encouraging because the surge in exports to Australia occurred when the world was in recession.
In 2022 China commanded a lion’s share of 63 percent in Australian apparel imports of $7.38 billion. Bangladesh ranks as the second-highest apparel exporter to Australia, followed by Vietnam, India, and Indonesia.
A delegation of Bangladesh exporters led by its leader Faruque Hassan is currently visiting Australia to explore the prospects in the Australian market. The delegation participated in the first-ever Bangladesh-Australia summit where it met representatives from the Australian government, non-governmental organizations, and various brands.
The delegation considers Australia a lucrative market for its garments and anticipates that Bangladesh can fill the void that would be created by an expected decline in Chinese garment exports to Australia. The delegation held positive meetings with brands such as Kmart Australia, Cotton On, and Target Australia.
Bangladesh primarily exports its RMG to traditional markets such as the USA, EU, and UK. However, the country is now eyeing non-traditional markets like Australia, Japan, Brazil, India, and China as part of its market diversification strategy.
According to delegation leaders, they reiterated the logic of obtaining duty-free market access to Australia after Bangladesh’s LDC graduation. The BGMEA representatives expressed hope that Australia would consider this proposal very positively.
However, during the discussions, the Australian side raised concerns about Bangladesh’s labor rights and the recent murder of a worker’s leader in Gazipur, as well as the issue of the new wage board. The delegation convinced the Australian that these issues have been resolved.
Bangladesh plans to double garment exports to Australia in 5 years
