Exporters in least developed countries (LDCs) in manufacturing industries like textiles and apparel are likely to witness a significant fall in revenues this year, according to the World Trade Organisation (WTO), which recently said some retailers in export destinations have started filing for bankruptcy protection, causing significant worries to LDC suppliers, as existing contracts risk being cancelled.
For example, Bangladesh’s exports registered an 83 per cent decline in April compared to the same month last year, said a WTO information note citing the export promotion agency of the country. Bangladesh and Cambodia have reportedly received order cancellations worth several billion US dollars, it said.Exporters in least developed countries (LDCs) in manufacturing industries like textile-apparel may see a significant fall in revenues this year, according to the World Trade Organisation, which said some retailers have started filing for bankruptcy protection, causing significant worries to LDC suppliers, as existing contracts risk being cancelled.#
LDCs include Bangladesh, Cambodia, Myanmar and Ethiopia, all major textile-garment manufacturers and exporters.
The ongoing pandemic may affect the near-term prospects for some countries to graduate from LDC status, the note cautioned.
Among the pandemic’s far-reaching consequences for the global economy, the LDCs face the most daunting challenges. A lack of resources to support an economic rebound is compounded by their dependence on a limited range of products exported to a few markets, some of which have been those worst affected by the COVID-19 outbreak. The pandemic threatens to derail hard-won development gains in LDCs, the note added.
Fibre2Fashion News Desk (DS)
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