¶¶Òõ¾«Æ·

Bangladesh’s readymade garment exports to both the European Union countries and the United States posted robust growth over the past decade, between 2015 and 2024, according to official data from the respective markets.

According to the Office of Textiles and Apparel, Bangladesh’s RMG export to the US — the largest single-country destination for the country — surged by 35.87 per cent to $7.34 billion in 2024 from $5.4 billion in 2015.

The growth trend remained consistent throughout the decade, reflecting the strength of Bangladesh’s apparel industry on the US market.

Similarly, Eurostat data show that RMG exports to the EU — the largest overall market for Bangladeshi apparel — jumped 58.45 per cent to $18.27 billion in 2024 from $11.53 billion in 2015.

The EU market also demonstrated sustained growth throughout the ten-year period.

Industry insiders noted that the decade-long growth was steady, except in 2020, when global apparel trade experienced a sharp decline due to the Covid pandemic.

The highest export of the RMG products to the US and EU from Bangladesh were $9.72 billion in 2022 and $21.92 billion in the same year respectively.

Industry insiders attributed the strong performance to competitive labour costs, large-scale production capacity and growing buyer  confidence in Bangladesh’s apparel sector.

However, they cautioned, innovation, design diversification and sustainability practices will be crucial for maintaining this growth momentum in the coming years, especially amid possible shifts in global trade policies, potential US tariff measures and rising competition on the EU market.

During the decade, the overall import of the RMG products by the US witnessed a decline of 6.93 per cent to $79.25 billion in 2024, from $85.15 billion in 2015.

For the EU countries, the import of RMG items from their global suppliers reached $85.51 billion, a robust 20.47 per cent higher than $71.01 billion in 2015, according to Eurostat data.

In the US, Bangladesh secured its position as the third highest apparel exporter over the decade, while China remained the top and Vietnam was the second highest exporter.

Moreover, in the EU, Bangladesh was the second-highest apparel exporter after China, followed by its competitors Turkey, India and Vietnam.

The decade-long rise in apparel exports to the EU and US has significantly strengthened Bangladesh’s foreign exchange earnings, with the sector now contributing over 80 per cent of the country’s total export receipts.

Over the decade, the US imported $30.5 billion worth of RMG items from China, which witnessed a sharp decline of 46 per cent to $16.5 billion, due to trade conflict between the countries.

From Vietnam, the US’ apparel imports was $10.56 billion in 2015, which surged by 42 per cent to $15 billion in 2024.

The US RMG imports from India and Indonesia were $3.66 billion and $4.94 billion in 2015, which soared to $4.7 billion and $4.25 billion in 2024 respectively.

The EU’s RMG imports from China witnessed a 4.14 per cent decline $24.06 billion in 2024, which was $25.1 billion in 2015.

The import from Turkey stood at $9.31 billion in 2024, which was 19.6 per cent higher than $7.78 billion in 2015.

The RMG imports from India and Vietnam were $4.18 billion and $3.98 billion in 2024, which were $3.9 billion and $2.31 billion respectively.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, told ¶¶Òõ¾«Æ· that over the past decade, Bangladesh’s apparel exports to Europe and the United States had grown steadily, driven by rising demand from European consumers and our ability to maintain competitive pricing.

‘However, sustaining this growth will become increasingly challenging as our export capacity nears saturation,’ he added.

Moreover, the EU is implementing key regulatory initiatives such as Corporate Sustainability Due Diligence Directive, European Green Deal and Digital Product Passport.

‘These require European buyers to identify and address human rights, labour and environmental risks throughout their supply chains, significantly impacting Bangladesh’s apparel sector,’ he added.

Meanwhile, US tariffs on Chinese and Indian products have encouraged some manufacturers to relocate production to Bangladesh, offering growth opportunities.

However, this has also intensified competition on the European market as Chinese and Indian suppliers increase their focus there, he added.

Relying solely on low costs is no longer sustainable in this complex landscape, he added.

The government must provide policy support, tax incentives and promote green investments alongside stronger trade diplomacy with the EU and the US, he added.

Recently, the US administration imposed a 20-per cent reciprocal tariff on Bangladeshi exporting goods, lowered from earlier declared 35 per cent and 37 per cent.

Talking to ¶¶Òõ¾«Æ·, Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association, said that due to competitive labour cost, price, and establishment, Bangladesh had been getting more orders.

‘Our production system is more mature than any other manufacturing country, which keeps us ahead and assists us to get buyers’ confidence,’ he added.

He also stated that due to US tariffs on competitors, Bangladesh was receiving more orders as they were shifting from China and even many Chinese entrepreneurs had begun to establish facilities in Bangladesh.

‘The competition on the US market might see an increase, but we could do well through government policy supports, innovation, and high-value products,’ he added.

Mohiuddin Rubel, former BGMEA director, noted that although growth was good in both the US and the EU, some issues in the US had made the market concerning.

‘If such challenges were to arrive at the EU, then we must suffer. The scenario of global trade is changing frequently, so we have to focus on new markets, high-value products,’ he added.

Recently, Research and Policy Integration for Development chair MA Razzaque said that the reciprocal tariffs might shrink imports and contract markets of the US by 12 per cent or $10 billion, potentially reducing Bangladesh’s exports to the US by up to 14 per cent, or $1.25 billion — including $1.08 billion in RMG — over the next year.

He also said that it might accelerate competition in the EU.