Bangladesh exports to Turkey grew by 40 per cent in the first 11 months of the financial year 2013-2014, overcoming the barrier of safeguard duty imposed by the European country on RMG items. EPB data showed exports to Turkey soared to $792.77 million against $568 million in the same period of the FY13 riding on the export growth of garment products. Turkey, which is also a major RMG producing country and a competitor of Bangladesh on the world market with around $17 billion annual export, imposed the safeguard duty in September 2011 at a rate of 17 per cent on apparel imports from the least developed countries including Bangladesh.
Due to the imposition of duty, the export to Turkey declined by 24.23 per cent to $551.87 million in the FY12 from $724.45 million in the FY11, though the exporters apprehended declining export by 50 per cent.
Despite having the barrier of safeguard duty the export earnings growth is maintaining a positive trend on the Turkey market due to the competitiveness of the readymade garment sector, former Bangladesh Garment Manufacturers and Exporters Association president Md Shafiul Islam Mohiuddin told New Age on Tuesday.
He said the resilience and efficiency of entrepreneurs and workers as well as incentive support from the government for new markets were the key elements to overcome the impediment of supplementary duty on the Turkey market.
In the FY13, apparel exporters of Bangladesh successfully overcome the supplementary duty barrier to the Turkey market based on competitive prices and the export earnings rose by 15.57 per cent to $637.81 million.
According to the data, the export earnings from apparel products in the FY13 increased to $415.31 million from $355.92 million in the FY12.
The export earnings from Turkey were $484.17 million in the FY10.
The garment export to Turkey in the first 11 months of the FY14 increased by 59 per cent to $576.34 million from $362.62 million in the FY13.
Earnings from vegetables, textile fibres, paper yarn and woven fabric increased to $192.14 million from $180.99 million in the period.
Despite being a competitor country and having duty barrier on apparel export, Bangladesh is doing well on the Turkey market due to dedication and commitment of manufacturers and workers, Exporters Association of Bangladesh president Abdus Salam Murshedy said.
Tarkey is producing some high-end products like China and Turkish people have shown their likings on the basic garments and sweaters of Bangladesh, he said.
Shubhashish Bose, vice-president of Export Promotion Bureau, said Bangladesh had overcome the duty barrier on the Turkey market due to cost competitiveness, quality competitiveness and supply capacity.
He said Turkey itself was a garment manufacturing country but recently some of the RMG factories there were closed down due to higher wages.
-With New Age input
