Inflation, Ukraine war reduce Bangladesh's export to Germany: Envoy

Inflation in Germany has recently hit a 50-year high of 8 per cent, according to fresh figures from the country’s Federal Statistical Office.

Amid the Russia-Ukraine war, Bangladesh's export earnings in May 2022 hit a nine-month low to $3.83 billion, 1.64 per cent lower than that of the earnings target of $3.89 billion set by the government, Troster was quoted as saying by Bangladesh German Chamber of Commerce and Industry (BGCCI) in a statement.

"Bilateral trade between Germany and Bangladesh amounts to over $7 billion, with Germany importing over $6 billion worth products, mostly textile. Germany is Bangladesh's second largest export market after US."

The envoy was speaking at an event on ‘National Budget 2022—Implications on Trade and Commerce’ organised by BGCCI in Dhaka.

In 2020, Germany imported $6.53 billion and exported only $588 million worth of goods to Bangladesh, the country's news media reported. Garment exports from Bangladesh to Germany stood at $5.95 billion in fiscal 2020-21 and to the US market, it was worth $6.97 billion.

Germany is the largest trading partner of Bangladesh in Europe and the second largest globally, he said.

He said Bangladeshi exporters need to prepare to face the new German Supply Chain Act, which will come into effect on January 1, 2023, primarily focusing on human rights and environmental issues.

Bangladesh must ensure human rights, rule of law, sound labour and environment standards to enjoy trade privileges in the German market, he added.

Fibre2Fashion News Desk (DS)