According to foreign reports, Bangladesh's clothing exports to the United States may be hit as the United States imposes restrictions on related goods from China's Xinjiang region. This comes after the Bangladesh Garment Buyers Association (BGBA) issued a directive asking its members to be cautious about sourcing raw materials from the Xinjiang region.
According to a statement from the BGBA, the Indo-Pacific Opportunity Project Regional Assessment Mission, funded by USAID, informed the BGBA that any garments produced in Bangladesh that are made with fabrics imported from Xinjiang cotton cannot enter the United States. If any products associated with Xinjiang cotton are found, these products will be confiscated. If confiscated, exporters will not receive their payment.
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. Domestic knitters can source yarns and fabrics from the local market, while woven manufacturers that meet most of their fabric needs through imports may face some challenges. However, Bangladeshi mills mainly import raw cotton from African countries, India and the United States, so they will not face any challenges.
In 2021, Bangladesh's yarn imports will be worth US$2.1 billion, a year-on-year increase of 150%, of which 84% will come from India, 8% from China, Indonesia and Turkey accounting for 4% and 3%, respectively. Grey fabric imports were valued at US$1.8 billion, down 30.7% year-on-year, due to a significant increase in yarn imports.
And Pakistan's textile industry is now in dire straits! Affected by energy outages and shortages of natural gas and electricity supplies, the local textile industry may face a loss of at least $1 billion in exports in early July.
The Pakistan Textile Mills Association said that the textile industry will not only reduce its output by more than 50% due to the half-month shutdown, but will also be forced to borrow $6 billion overseas due to energy supply and cost constraints. At the same time, it will face lost orders, customers, defaults risk of loss, etc. At present, the most severely damaged area is Pakistan's Panga Province, which accounts for 70% of the country's textile factories. 400 textile factories have been shut down, thousands of people have lost their jobs, and the next The $26 billion export target for the fiscal year was adversely affected, and the association has referred the consequences of the matter to the Prime Minister recommending that energy supplies be restored as soon as possible.