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China overtakes country in exports of jeans to US
12
Oct '09
Bangladesh, led global manufacturers in exports of denim jeans and cotton trousers to US markets. But that advantage is no more visible, as China overtook Bangladesh in shipments of these products since the beginning of 2009.

Industrial experts attribute this to the end to exports quotas in December 2008, imposed on certain Chinese product exports from the sector, when the multi-fibre arrangement (MFA) or quota regime was eliminated from January 1, 2005.

Bangladeshi exporters shipped 24.9 million dozens, while the Chinese exported 23.9 million dozens to the US market in 2008, but by August of this year, the Chinese juggernaut had overtaken the Bangladeshi industry in export of these products.

According to data culled from US Department of Commerce, in the first eight months of the current year, exports from Bangladesh have risen by only 7 percent to 1.9 million dozens, while China has witnessed a growth of 94 percent to 2.99 million dozens.

The experts add by saying that, China provided a huge amount of subsidies, since the economic crisis began, while on the other hand, Bangladeshi received minimal support from the govt. Others say that, China shifted focus from high and middle end range to the value range which also helped it garner greater market share.

There are around 17 denim manufacturing companies in Bangladesh, which have a combined production capacity of 300 million metres per annum against a demand of 600 million meters, the rest of which is imported from China, Pakistan and India.

Fibre2fashion News Desk - India

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