Trade War a Boon for Bangladesh: Bloomberg

As the United States targets China in a trade war, clothing firms are taking steps to diversify manufacturing locations to spread risk. Inquiries from manufacturers are on the rise in Bangladesh, and one company expects its US exports to more than double this fiscal year. “The South Asian nation, which is the world’s second-largest garment exporter, has seen the value of its overseas sales rise to a record $40.5 billion in the year ended June 30, coinciding with Trump boosting tariffs on $200 billion of Chinese goods to 25% from 10%,” reports Arun Devnath for Bloomberg. “The tit-for-tat trade war has seen American and Chinese orders for more than half of the 1,981 tariffed products so far being re-routed to other countries, including Vietnam and Malaysia.” About $41 billion in clothing business goes to China, and its average export prices per garment remain lower than those in Bangladesh or Cambodia. The garment industry in Bangladesh employs 4 million, accounting for more than 70 percent of exports and 13 percent of GDP. Devnath warns that companies will expect the less developed nations to reduce regulations and improve infrastructure including highways along with automation of factories and supply chains. – YaleGlobal