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Leather sector's earnings cross Tk 124b in 2003-04 FY
Md. Asiful Huq
10/19/2005
Export earnings from the leather sector reached Tk 124.64 billion in 2003-04 financial year against the target of Tk 116.80 billion showing an increase by 6.72 per cent.
The contribution of the leather sector to the country's foreign exchange earnings in 2003-04 financial year is 2.78 per cent, says statistics published by Export Promotion Bureau (EPB). The figure has increased by 12.58 per cent from the previous fiscal year (2002-03) when export earnings from the same sector was Tk 110.71 billion.
Our leather products are mainly exported to Hongkong, Italy, Korea, Japan, Taiwan, Vietnam, Spain, China, Mexico, Brazil, Poland, India and the Netherlands.
Besides these countries Australia, Switzerland and Canada also import leather goods from Bangladesh.
Australia liberalised its import since early 1990s although NTBs still persist. In July 1, 2003 Australia introduced duty-free access to products from the Least Developed Countries (LDCs) based on a broad based criteria about local content requirement. This paved the way to import leather and leather goods from Bangladesh, EPB officials said.
A revealed comparative advantage index indicates a good potential of trade between Bangladesh and Australia.
Recent appreciation of Australian dollar and depreciation of Bangladeshi taka makes the export more competitive and places Australia in a favourable position in importing goods from Bangladesh.
Swiss Import Promotion Programme (Sippo) Project Manager Adrian Bretscher recently visited Bangladesh to sign an agreement with a local NGO to impart training to produce and export organic shrimp from Bangladesh.
While talking to the FE he showed keen interest in importing leather products from Bangladesh and said these products have huge demand among different classes of consumers in Switzerland.
Presently Bangladesh exports leather and leather goods worth Tk 9.11 billion there. The figure may increase further if proper initiatives are taken to promote export, an EPB official said.
Canada granted duty and quota free market access to Bangladeshi products from January 1, 2003.
Sources said country's exports to Canada have tripled over five years from 2000 to 2004.
Trade Facilitation Office Canada (TFOC) consultant Frank Tilley, while visiting Bangladesh a few days ago informed that China, Pakistan and India have to pay 5 per cent to 7 per cent duty on their export goods to Canada, while it is zero per cent in the case of Bangladesh.
He presented a paper on 'Canadian Leather Goods Market' where he stated that the potential to export leather goods from Bangladesh to Canada is very bright.
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