Canada expected key RMG destination by 2021

Bangladesh is aiming to achieve an ambitious rise to $3.5 billion of readymade garments (RMG) exports to Canada by 2021. According to Masud Rahman, chief of the Canada Bangladesh Chamber of Commerce and Industry (CanCham Bangladesh), exports to Canada stood at $1.1 billion in the fiscal year to June 2014, $770 million of Bangladesh-rmg-workerwhich were ready made garments.

Bangladesh has hopes of hitting an overall target of $50 billion of overseas sales by the end of 2021 as they become a middle income country. Canada will be one of the key garment export destinations.

Bangladesh is currently the 2nd largest RMG exporter in the world behind China. This trend remains true when looking at Canada’s current top RMG import partners. According to data from the Apparel Export Promotion Council (AEPC), Bangladesh actually had more RMG exports to Canada in 2013 than the last fiscal year. Canada-RMG.pngHowever, these exports have increased steadily since Ottawa allowed them duty-free access in 2003, which has resulted in a 14 percent compound annual growth rate (CAGR) between 2005-2013.

Currently, the United States, Germany, Britain and France all ranked ahead of Canada as the biggest export markets for Bangladesh, although this new ambitious target for 2021 is sure to close the gap.

Courtesy: B2C