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Leather exports set to rise in EU markets

Apr '06
Imposition of anti-dumping duties on leather shoes from China and Vietnam by the European Union (EU) has opened up new vistas in European markets for Bangladeshi leather exporters.

The European Union had announced imposition of anti-dumping duties on imports of leather footwear from China and Vietnam earlier this month.

Bangladesh Finished Leather, Leathergoods and Footwear Exporters Association (BFLLFEA) President Tipu Sultan said the decision will create favourable conditions will spur the demand for Bangladeshi footwear products.

Large chains that import leather shoes from China and Vietnam, which include Marks & Spencer and Tesco, have already begun searching for alternative suppliers.

Leather exports recorded a rise of 12 percent and footwear by 29 percent in first seven months of current fiscal year as the EU buyers started offered additional business from this year, an official of BFLLFEA said.

The country earned $200 million from leather sector during July-January period during 2005-6 against $170 million in corresponding period of previous fiscal year.

Government has already formulated a development strategy and implemented a plan for leather sector to export more during 2006-2010 period.

Export Promotion Bureau's data showes that in previous fiscal year, 2004-2005, finished leather exporters attracted 26 percent higher price for their products.

The average price of a square foot of finished leather was $3.70 during financial year 2005 compared to $2.93 during previous fiscal year.

Export income from finished leather during 2004-05 increased by about 5 percent to $220 million but volume of export declined by about 17 percent to 50.71 million square feet.

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