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Bangladesh's higher export to non-traditional regions and blocs has ushered in a new hope of market diversification, analysts said on Friday.
Shipments to non-traditional markets, including Africa, Asia, ASEAN, CIS, IORA, Eurasian, East and the Eurozone, LDC, D-8, Oceania and OIC, have shown higher growth in the first quarter (Q1) of this fiscal year (FY), 2023-24.
But exports to traditional markets like the European Union, the Eurozone, North and South America, BIMSTEC, the Middle East, North American and SAARC countries, have shown a downtrend, finds an FE analysis.
According to the Export Promotion Bureau (EPB), the shipment of Bangladeshi products to almost all non-traditional markets grew while that to traditional markets was mostly down.
The export of local products to non-traditional regions and blocs has shown a higher growth rate between 2.5 per cent and 44 per cent in this Q1 than that in the corresponding period last year.
On the other hand, the export to most of the traditional regions has fallen at a range between 0.63 per cent and 11.22 per cent during the period.
Economists and analysts said export to non-traditional markets at a higher volume was good enough to diversify markets of 'made-in-Bangladesh' products overseas.
"The growth won't sustain or it won't grow at a higher rate until we go for bilateral or multilateral economic cooperation in cross-border trade," they observed.
Among the top 10 Bangladeshi exportables is ready-made garment (RMG) with an impressive 80-per cent share in the export basket.
Other items are home textile, leather and leather products, agricultural products including process foods, jute and jute goods, engineering products, frozen and live fish, footwear (other than leather), plastic products and specialised textile.
The FE analysis has found that Bangladesh's export to Oceania was the highest in Q1 of FY24 compared to the same period in FY23.
EPB data shows shipments to Australia, Fuji, American Samoa, Solomon Islands and Vanuatu grew by 43.91 per cent to $420.32 million this July-September period.
It was $292.06 million last fiscal.
Meanwhile, shipments to African nations, including Egypt, Kenya, Morocco, Mauritius, Sudan, Somalia and Tanzania, showed 20-per cent growth to $119.25 million.
It was $99.63 million in FY23.
The import growth of D-8 countries, including Turkey, Iran, Malaysia and Indonesia, was recorded by 14.36 per cent to $271.61 million in Q1 this fiscal from last fiscal's $237.49 million.
The shipment to very prospective CIS countries, including Russia, Georgia, Kazakhstan and Azerbaijan, has also risen by a stirring 32.4 per cent to $1.1.18 million in FY24 from $76.42 million in FY23.
Similarly, export to ASEAN countries, including Singapore, Malaysia, Vietnam, Thailand, Myanmar and Indonesia, also grew by 2.56 per cent to $219.04 million than $213.56 million in FY23.
On the other hand, export to traditional markets, including America, North America, the Middle East and SAARC countries, dropped during the period in question.
The EPB data showed shipment to North America declined by 1.27 per cent to $2.79 billion in FY24 than $2.83 billion in FY23.
The export to Middle-Eastern countries saw the biggest fall by 7.44 per cent to $289.38 million in Q1 of FY24 from that of $312.65 million in Q1 of FY23.
The shipment to SAARC countries has also declined by 11.22 per cent to $593.76 million during the period under review.
It was $668.81 million in the corresponding period of FY23, according to EPB statistics.
About this development in export trade, economist Dr Zahid Hussain told the FE that the higher growth of export to non-traditional markets was good news.
"Yet, we have to sustain our growth in those markets quarter on quarter and year on year. Then our true market diversification will take place," he said.
The economist suggested that the government go for preferential trade arrangements like free-trade agreement, economic pact or multilateral economic deal with non-traditional markets for boosting export.
Mr Hussain said China, India and ASEAN countries were most potential destinations for Bangladeshi goods beyond traditional markets like the USA and Europe.