Export competitiveness of Bangladesh leather manufacturing: a policy success?

Leather is a traditional export item of Bangladesh. Hides and skins produced in the country enjoy a good reputation worldwide for their quality. The country, however, has had little success in realizing the potential export earning from the sector. The business community and trade experts believe that export earnings from the sector could be substantially increased if the hides and skins are transformed into high-quality leather and leather products. This, however, depends on adoption of appropriate policies on the part of the government and business community to develop the sector. The products must be improved to satisfy the quality requirements demanded by the consumers of the international market especially of the developed world. Potentials for future export growth is considered to be high provided that product diversification and quality improvement can catch up with the international standard. The low wage rate and poor enforcement of environmental laws and rules have given the country's leather sector a comparative advantage in the world market. Moreover, the country enjoys duty exemption under the GSP (Generalized System of Preference) from most the importing countries of the developed world.