Bangladesh's export to the European Union dropped 4.2 percent to Euro4,092 million in 2005 compared to Euro4,274 million in 2004, according to a review by the European Commission.
Bangladesh's apparel export accounts for over 82 percent of overall exports to the EU in 2005. Of its total apparel exports, 65 percent was destined for the EU region.
Bangladesh registered a 5.3 percent decline in earnings to Euro3,523 million in 2005 after registering a growth of 7 percent to Euro3,721 million in 2004, slipping to fifth position among top five apparel exporters to the region.
Poor infrastructure, unintegrated textile supply chain and inordinate delay in goods despatches, especially of woven garment exports coupled with price war among all apparel exporters resulted in exports decline since the ending of textile quotas.
Meanwhile, India jumped to the fourth position as lead exporter to the EU zone with a rise of 26 percent from Euro2,625 million in 2004 to Euro3,554 million in 2005.
China leads the five nation chart with Euro18,435 million registering a 42 percent growth.
At second position is Turkey recording a modest growth of 3.5 percent at Euro8,153 million.
Romania stands third even with a 6.4 percent decline in earnings worth Euro3,642 million.
As for India, it gained from the fact that homegrown cotton, low-cost finance and increased government facilities helped lower their product prices to rope in more buyers besides enhancing supply that resulted in better export performance.
About Bangladesh's performance, an EC official was quick to comment that its knitwear manufacturers focused on the US market from early 2005.
Exports to the EU market thus suffered as no steps were taken to enhance production in relation to supply.
To recoup its EU market share, it will have to increase its capacity and supply position as price competition has more or less evened out.
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