MoU to boost Brazil-Bangladesh textile-apparel trade

26 Jul '22

2 min read

Pic: 123rf.com

The two-way Brazil-Bangladesh textile-apparel trade is likely to get a boost after the recent signing of memorandum of understanding (MoU) between Rio de Janeiro Chamber of Commerce and the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI). While Brazil is a major cotton exporter, Bangladesh is the second largest garments exporter.

Bangladesh is an import dependent country, and gets is supply of cotton from several countries, including Brazil, which annually produces 12.7 million bales of 480 pounds each. On the other hand, the South American country imports readymade garments from Bangladesh. With the signing of the MoU, Bangladesh can explore deeper penetration in Brazil for its textile products, while it can increase import of cotton from Brazil.

However, Brazil’s import of apparel is showing declining trend since March 2022. The import decreased to $8.15 million in June from $10.379 million of May 2022. The import was $11.806 million in April and $16.534 million in March 2022, as per Fibre2Fashion’s market insight tool TexPro.

Annually, Brazilian import of apparel from Bangladesh decreased to $99.700 million in 2021 from 111. 984 million in 2022. The import peaked at $193.407 million in 2018. However, home textiles import of Brazil from Bangladesh was negligible at $1.125 million in 2021.

On the other hand, Brazil’s export of cotton to Bangladesh was $44.633 million in June, which was down from $46.387 of May 2022. The export was $41.502 million in April, $54.175 million in March and $32.664 million in March 2022. Brazilian export of cotton to Bangladesh increased to $437.492 million in 2021 from $323.441 million in 2020. The export was noted at $309.232 million in 2019 and $163.348 million in 2018, as per TexPro.

Fibre2Fashion News Desk (KUL)

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