Bangladesh export competitiveness and trade strategy

Bangladesh’s apparel and export sectors are facing increasing competitive pressures in international markets. Data from 2026 indicates a decline in readymade garment exports to the United States; between January and August, exports fell by 4.43 percent to approximately $5.39 billion. This decline has resulted in China overtaking Bangladesh as the second-largest apparel exporter to the U.S. market, while Vietnam maintains the top position.

In the European Union, the average price of Bangladeshi apparel per kilogram decreased by 8.47 percent between January and July 2026, whereas competitors like Vietnam saw price increases of 11.76 percent. In response, industry stakeholders are advocating for a shift from low-cost mass production toward technology integration, value-added manufacturing, and productivity enhancement. This push is highlighted by the upcoming Textile Innovation Expo 2026 in Dhaka, organized by the Textile Innovation Exchange (TIE).

To safeguard competitiveness ahead of its graduation from Least Developed Country (LDC) status, the government is aggressively pursuing Free Trade Agreements (FTAs) and Comprehensive Economic Partnership Agreements (CEPAs). Beyond previous feasibility studies for the European Union, Canada, and Singapore, the government is negotiating with partners such as South Korea and the UAE, while also seeking entry into the Regional Comprehensive Economic Partnership (RCEP). Bilateral efforts include discussions with Indonesia to upgrade trade agreements and meetings with Indian officials at the 16th Bangladesh-India Joint Working Group on Trade, where Dhaka requested the removal of export restrictions through Indian land ports and the withdrawal of anti-dumping duties on jute and PET film products.