Bangladesh is a small and densely populated state in South Asia, this state for many years is known for its production of fabrics and clothing. And with each year the production of these products is only increasing, now the share of Bangladesh in the world market of garment exports has grown 7.9%, and this country steadily holds the 2nd place in this field after China.[i]
However, as strange as it may sound, the new political agenda and public trend of “going green” in the Western countries (and especially in the EU countries) may give Bangladesh even more growth in this area. The fact is that Bangladesh is now suffering from garbage problems, the textile industry leaves a lot of waste that used to be either incinerated or left in landfills, leading to environmental problems (air, soil and water pollution). For many years cotton waste was just garbage, but now there is an increased demand to buy the waste and recycle it into new fabric. Cotton waste is cotton and textile waste generated from spinning, weaving and textile mills, which is in the form of fibers, yarns or pieces of fabric depending on the stage of production.
Many international retailers and apparel brands are transforming the fashion industry based on recycled items to reduce carbon emissions and avoid extensive waste generation, resulting in increased demand for waste. It is worth noting that a new proposed European Union law has already had an impact on the consumption of clothing made from cotton waste. The 27-country bloc has decided not to buy clothes from factories that do not use cotton waste from 2030 as part of its circular fashion movement.[ii] (circular fashion – is a closed-loop system that produces new materials from old, reduces the amount of natural resources used to make clothes, and diverts products from landfills). Many large companies have already started introducing changes. For example, Swedish retail giant H&M has asked clothing suppliers to use more cotton waste than raw cotton in the production process.
Bangladesh produces about 4 million tons of cotton waste per year. If recycled, it could be used to produce $6 billion worth of export garments.[iii] This will not only help get rid of waste, but will also generate more revenue for businesses and the government. Some Bangladeshi officials and businessmen want to go even further and further ban the export of garments, leaving only the export of waste and fabrics made from cotton waste. In this way it will be possible to make good profits and not to increase the already large amount of waste that already exists.
These changes in Europe, and Bangladesh’s willingness to change, offer new opportunities to solve many problems and to replenish the budget. However, there may be obstacles related to internal problems and external reactions to them. First, there may be problems with controlling the production of fabrics and garments, not all businesses will be honest in the production of goods, which may lead to the supply of poor quality raw materials or illegal export of some goods. Secondly, the sale of waste and the ban on the sale of clothing will be only for export, for domestic consumers nothing will change, which means that a number of companies will still produce large quantities of clothing and leave behind a huge amount of waste, which may hinder the fight against pollution, because the amount of garbage will not be reduced.
Last May, Washington announced visa restrictions to support Bangladesh’s goal of holding free, fair and peaceful national elections. Businessmen and politicians fear that Bangladesh could face U.S. trade sanctions after the vote. Of course, U.S. sanctions could have an impact on Bangladesh, because completely abandoning garment exports and switching to cotton waste exports takes time, so garment trade with America will remain important for some time to come. In addition, we should not forget that the US may have an impact on the EU as well.
Summarise, new trends and environmental regulations are already changing the market, which as a result gives Bangladesh opportunities to make money and solve environmental problems. However, it is not a quick journey and during the transition to a new phase of trade relations it is important to avoid mistakes, conduct quality control of producers, change production technologies for the domestic market, and try to avoid political scandals that can affect relations with important trading partners.
[i] “Bangladesh’s Global Market Share In Clothing Exports Rises To 7.9%”, The Business Standart, https://www.tbsnews.net/economy/bangladeshs-global-market-share-clothing-exports-rises-79-675394# (Date of Accession: 01.08.2023).
[ii] “An Unlikely Product Brings $400m A Year: Cotton Waste”, The Daily Star, https://www.thedailystar.net/business/news/unlikely-product-brings-400m-year-cotton-waste-3512731# (Date of Accession: 07.01.2024).
[iii] “Bangladesh Can Export $6 Billion RMG Made From Recycled Yarn”, The Daily Star, https://www.thedailystar.net/business/news/bangladesh-can-export-6-billion-rmg-made-recycled-yarn-3410281 (Date of Accession: 03.09.2023).
