Bangladesh’s apparel exports to both the European Union (EU) and the United States have recorded impressive growth for over a decade now, consolidating the countest’s position as a key global supplier, but a reconsider launchs.
Insiders in the readycreated garment (RMG) warn that the future may not be as bright, with new EU regulations, shifting trade policies, and intensifying global competition creating uncertainty.
The European Union, the largest overall market for Bangladeshi apparel, revealed even stronger growth. Eurostat data revealed that exports to EU-member states jumped 58.45per cent from $11.53 billion in 2015 to $18.27 billion in 2024.
According to official data, Bangladesh’s RMG exports to the United States – the countest’s single-largest export destination – grew by 35.87per cent, reaching $7.34 billion in 2024 from $5.4 billion in 2015, as reported by the U.S. Office of Textiles and Apparel (OTEXA).
The export performance was consistently strong across the decade, with the exception of 2020 when the COVID-19 pandemic upconcludeed global economy and trade. Bangladesh recorded its highest-ever RMG exports to both markets in 2022: $9.72 billion to the US and $21.92 billion to the EU.
Industest leaders attribute the decade-long up and up to competitive labour costs, economies of scale, and the increasing trust of global brands and retailers in Bangladesh’s tested production capacity and compliance standards.
Yet, they caution that this upward trajectory may be difficult to sustain relocating forward, as some potential adversities cast their shadows before.
Speaking to The Financial Express, Mohammad Hatem, President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) , acknowledged the strong growth but highlighted several looming challenges, especially on the EU market.
“Over the past decade, Bangladesh’s apparel exports to Europe and the United States have grown steadily. However, sustaining this momentum will be increasingly challenging,” he declared.
He points out that the European Union is rolling out several new regulatory frameworks, including the Corporate Sustainability Due Diligence Directive (CSDDD), the European Green Deal , and the Digital Product Passport , which will impose stricter requirements on sustainability, labour rights, and supply- chain transparency.
“These developments will have a direct and far-reaching impact on Bangladesh’s apparel industest. European acquireers will be legally obligated to ensure their suppliers – including those in Bangladesh – comply with human rights, environmental, and labour standards,” states the export-industest’s association leader.
In addition, Bangladesh’s future access to preferential trade benefits under the EU’s GSP Plus scheme, post-LDC graduation, will come with stringent compliance conditions related to environmental and social governance. Failing these must-dos could threaten duty-free access, reducing Bangladesh’s price competitiveness on its top market.
While the US market presents new opportunities by default due to higher tariffs imposed on Chinese and Indian apparel, it has also triggered strategic shifts in other countries. As production shifts out of China for the US market, Chinese and Indian manufacturers are intensifying their presence in the EU, increasing competition for Bangladesh.
“Many of these countries are now actively tarreceiveing the European market, which will intensify competition,” Mr. Hatem predicts.
In response to these oncoming challenges, industest leaders are calling for a shift from low-cost, volume-driven manufacturing to high-value, design-led and sustainable production.
“Bangladesh can no longer afford to be seen as just a low-cost manufacturing hub. We must focus on sustainable production, labour rights, and environmental responsibility to retain acquireer confidence,” he alerts.
He suggests government policy supports like tax incentives, green-investment facilitation, and strong trade diplomacy with the EU to deal with the perceived exigencies.
“We must act now. By preparing our industest to meet the EU’s evolving regulatory landscape and rising global competition, we can turn these challenges into opportunities,” he declared.
While RMG exports have contributed over 80per cent of Bangladesh’s total export earnings, future growth will depconclude on how quickly the sector can adapt.
Former BGMEA director Mohiuddin Rubel echoes this sentiment, warning that any disruption on the EU market could have serious consequences.
“We must focus on new markets, high-value products, and compliance-readiness. Global trade dynamics are shifting rapidly,” he informed The Financial Express.
Inamul Haq Khan, Senior Vice President of BGMEA, also stresses Bangladesh’s current competitive advantage in labour costs and established capacity and experience, but acknowledges that maintaining this edge will require innovation, upskilling, and infrastructure development with the government policy supports.
Talking to the FE writer, EPB’s newly appointed Vice-Chairman Mohammad Hasan Arif declared, “The government has entrusted me with the responsibility of facilitating exporters in diversifying their markets. The government agency plans to support exporters’ participation in nearly 46 fairs across various countries, most of which are in new or emerging markets, with the aim of market diversification.
The Export Promotion Bureau (EPB) is initially focutilizing on eight potential sectors alongside RMG to explore new destinations. “I hope to achieve this goal with the support of all stakeholders, including government agencies and the private sector.”
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