“We are far from reality. Many people believe that we have no competitors and no one can match our low prices. This is wrong. India is not that expensive. Wages are low in many Indian states and India aims to overtake Bangladesh in apparel exports,” he said.
Fazlul Haq said, “After the EU-India FTA, we should be concerned. We should stop focusing on the wrong issues and work on improving our competitiveness. Also, the government should take the initiative to sign FTAs with the EU. Otherwise, apparel exports after 2029 will be seriously affected.”
On the back of EU trade preferences, Bangladesh has become Europe’s second largest apparel exporter after China in sectors such as denim, trousers and T-shirts.
After LDC graduation, if Bangladesh fails to secure FTA or GSP plus benefits, it will face around 12.5 per cent tariff on apparel exports to the EU after 2029. Meanwhile, India and Vietnam will continue to enjoy zero-duty access under their FTAs. Industry leaders have warned that a decline in Bangladesh’s apparel exports would then be inevitable.