According to foreign reports, Bangladesh’s clothing exports to the United States may be hit due to the United States’ restrictions on goods from China’s Xinjiang region. Prior to this, the Bangladesh Garment Buyers Association (BGBA) issued a directive asking members to be cautious about sourcing raw materials from the Xinjiang region.
According to a BGBA statement, the Indo-Pacific Opportunity Project regional assessment mission funded by the US Agency for International Development notified BGBA that any clothing produced in Bangladesh must be imported from Xinjiang. Cotton cannot enter the United States for fabric production. If products are found to be in any way related to Xinjiang cotton, these products will be confiscated. If confiscated, exporters will not receive their payments.
It is reported that the delegation also held a meeting with the Bangladesh Textile Mills Association (BTMA). The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said manufacturers are closely monitoring the issue and many of them have found alternatives to imported yarns and fabrics. While domestic knitting mills can source yarn and fabric from the local market, weaving mills that meet most of their fabric requirements through imports may face some challenges. However, Bangladeshi cotton mills mainly import raw cotton from African countries, India and the United States, so they will not face any challenges.
Bangladesh’s yarn imports in 2021 are US$2.1 billion, a year-on-year increase of 150%, of which 84% comes from India, 8% from China, 4% from Indonesia, and 3% From Turkey. Gray fabric imports were US$1.8 billion, a year-on-year decrease of 30.7%, due to a significant increase in yarn imports.
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