Speakers at an event suggested that Bangladesh should soon begin producing recycled clothing that complies with international environmental safety standards in order to increase its exports to the European Union (EU).
They contend that modifications to trade patterns typically bring about important adjustments to a country’s political systems, economic structure, and degree of technological advancement, as well as new trade theories or agreements. Nevertheless, they pointed out that Bangladesh needs to take the required steps to make this happen.
These statements were presented during a discussion held at the Business Initiative Leading Development (BUILD) office in Dhaka on how the EU’s circular textile laws affect its trading partners.
The recently published EU Strategy for Sustainable and Circular Textiles prioritizes transparency, sustainability, and circularity throughout the textile value chain, impacting consumers and businesses both inside and outside the EU. Bangladesh exports a significant amount of textiles and apparel to the EU.
During the fiscal year 2022–2023, Bangladesh exported apparel valued at US$28.6 billion to the EU. In the fiscal year 2023–2024, the total was US$ 25.44 billion, a decline of over 6.07 percent from the previous year.
Bangladesh sends more than 60% of its clothing to the EU and the UK, accounting for more than 93% of total shipments.
BUILD CEO Ferdaus Ara Begum said Bangladesh needs to create new estimations and plans for exporting textiles to the EU. This involves identifying potential avenues for development as well as barriers to market access.
According to her, Bangladesh needs to assess the legislative changes and develop a comprehensive action plan in order to assist its textile and apparel sectors in adapting to the EU’s sustainable and circular approach.
The narrow margins and decline in global demand have already put Bangladesh’s garment industry in a crisis. Asif Ibrahim, the chairman of the Chittagong Stock Exchange PLC, asserted that local industry players would supply the capital required to establish a circular economy.
