According to data from the U.S. Department of Commerce's Office of Textiles and Apparels, Bangladesh's cotton apparel exports to the U.S. dropped by 9.56% to $2.01 billion in the first five months of 2024. Additionally, apparels made from man-made fibers decreased by 21.85% to $755.08 million. The data shows that the total U.S. apparel imports declined by 6.0% to $29.62 billion during the same period, down from $31.51 billion in the same period of 2023.
In the first five months of 2024, Bangladesh's apparel exports to the U.S. fell from $3.31 billion in the same period of 2023 to $2.90 billion. In terms of quantity, Bangladesh's apparel export volume dropped from 1.01 billion square meters in January-May 2023 to 960 million square meters in the same period of 2024.
In the first five months of 2024, Bangladesh's apparel exports to the U.S. declined by 12.31% in terms of value. In recent months, Bangladesh's apparel exports to the U.S. have consistently experienced double-digit negative growth.
In fiscal year 2023, Bangladesh's apparel exports surged to the world's top position, surpassing many countries. The Bangladesh Garment Manufacturers and Exporters Association reported that apparel accounted for over 80% of Bangladesh's exports in FY 2023 (July 2022-June 2023), reaching $47 billion, more than double the amount from a decade ago, exceeding the previous year's record high. Bangladesh's knitwear exports have been crucial, with nearly doubling over the past decade. Exports of apparels to the U.S. and EU have continuously grown, with cotton apparel exports being particularly notable in 2022.
Due to the Russia-Ukraine war and persistent high inflation, Bangladesh has faced severe energy crises and high costs. Exporters report that due to serious energy issues, high water and electricity costs, increased production costs, longer delivery times, and cumbersome customs procedures, Bangladesh is struggling to keep up with competitors in the U.S. and other key markets. The global economic downturn has led to a decrease in U.S. apparel imports, but with faster shipping times from China and Vietnam, these countries have begun to capture market share in recent months.
In addition to the increase in apparel exports to the U.S. from Vietnam and China, Cambodia's apparel exports to the U.S. grew by 7.75% to $1.28 billion from January to May 2024, compared to $1.19 billion in the same period of 2023.
