Despite the pressure of countervailing duties, Bangladesh has surpassed Nicaragua, Honduras and China to become the top exporter of T-shirts to the US market in the first six months of 2024. According to the US International Trade Commission, the US imported T-shirts worth $373.2 million from Bangladesh during this period. Bangladesh has never been at the top of this market before. Despite the tariff increase and competition, Bangladesh’s position is relatively favorable, but there is a risk that this position will change in the future due to the impact of the new countervailing duties that came into effect on August 7.
Despite the pressure of counter-tariffs, Bangladesh has achieved historic success in exporting T-shirts to the US market in the first six months of 2024. For the first time, Bangladesh has topped this market, leaving behind long-time top exporting countries like Nicaragua, Honduras and China.
Export statistics
According to data from the United States International Trade Commission (USITC), the United States imported T-shirts worth US$3.52 billion from 117 countries from January to June of this year. Of this, Bangladesh’s share was $373.2 million. Nicaragua, which was at the top last year, exported T-shirts worth $361.2 million during the same period.
Breaking a 36-year record
From 1989 to 2024, the US T-shirt market was dominated by Honduras, Nicaragua, Hong Kong, Jamaica, Mexico and China. Except for China and Hong Kong, the rest of the countries received tariff benefits due to trade agreements with the US. However, on April 2, 2024, the Trump administration imposed a minimum additional tariff of 10 percent on all products from all countries, which Nicaragua and Honduras also had to pay. In this changing situation, Bangladeshi T-shirts rose to the top for the first time.
Tariff changes and future challenges
Since August 7, the United States has implemented countervailing duties at different rates on different countries worldwide. For Bangladesh, the tariff rate is 20 percent, which is the same as Vietnam and lower than India (50%) and China (30%). Nicaragua now has to pay an 18% countervailing duty, which has reduced their competitive advantage. BGMEA President Mahmud Hassan Khan said that while this success is commendable, a decrease in demand from US consumers could have a negative impact on exports.
Read more: CMP Commissioner Orders Police to Shoot if Weapons Are Drawn in Chattogram
Competitive price and quality
According to USITC data, each T-shirt exported from Bangladesh in the first six months of 2024 cost an average of $1.76. Nicaragua’s average price was $1.65 and China’s $1.63. Bangladesh’s average price is higher than Pakistan, Nicaragua and China, but lower than Vietnam ($2.68), Honduras ($2.10) and India ($1.81).
Bangladesh’s position in the global market
In 2023, T-shirts worth $56.82 billion were exported to the world, with Bangladesh ranked second after China. According to NBR data, Bangladesh exported T-shirts worth $7.45 billion to 158 countries in the last fiscal year. The United States is third on the list, after Germany and Spain.
Top companies exporting to the United States
In the last fiscal year, 811 Bangladeshi companies exported T-shirts to the United States. Among them, Savar’s GAB Limited ($155 million) is at the top, followed by SDS International ($71.8 million) and Ayesha Clothing Co. ($46.7 million). The top 10 also includes Knit Asia Limited, Divine Intimates, Ratul Apparels, Taqwa Fabrics, JM Fabrics, Impress-Newtex Composite Textiles and York Fashion.
While this success is a great testament to the competitiveness of Bangladesh’s garment industry, tariff changes, global economic conditions and fluctuations in consumer demand may pose major challenges for the future.
Source: Prothom Alo
