- Bangladesh–India Trade Slows in Current Fiscal Year
Bangladesh’s merchandise exports to India fell by 4.98 per cent to $1.05 billion during July to January of fiscal 2025-26, down from $1.10 billion in the same period a year earlier, according to Export Promotion Bureau data. The decline was largely attributed to trade restrictions imposed by India.
Garments remained the largest export category, but earnings dropped 8.13 per cent to $392.84 million from $427.62 million a year ago. Woven garments recorded a sharp fall of 14.96 per cent, although knitwear exports grew by 4.78 per cent.
Exporters linked the downturn to countermeasures taken by both countries last year, including restrictions on land port shipments. In April 2025, India revoked Bangladesh’s access to transshipment facilities for exports to third countries. Bangladesh later banned yarn imports from India through land ports, prompting India to impose phased restrictions on Bangladeshi exports.
Between May and August, India restricted the entry of garments, food products, jute goods, cotton-yarn waste, plastic products and wooden furniture, and launched an anti-dumping investigation into Bangladeshi jute products. Under the new rules, jute and garment exports must be shipped via the Novoseva port in Mumbai, while certain other goods are limited to specific land ports connected to West Bengal.
Asif Ashraf, managing director of Urmi Group, said shipments declined mainly due to India’s land port restrictions. Faruque Hassan, former BGMEA president, said export and import costs increased as both countries restricted land port use, adding that shipments can now be made through only two sea ports, raising lead times. He also noted that higher US tariffs on Indian goods have pushed India to boost domestic consumption. Abdul Barik Khan, secretary general of the BJMA, said jute exports to India declined due to anti-dumping duties. Bangladesh exports jute yarn, sacks and fabric, along with processed foods such as biscuits, chanachur, chips, fruit drinks, beverages, mustard oil and cakes, to the Indian market.
Source: The Financial Express
- Bangladesh–Japan EPA to Strengthen Apparel and Textile Exports
Bangladesh and Japan have signed an Economic Partnership Agreement, with the apparel and textile sector emerging as the primary beneficiary. The agreement is expected to take effect after approval by Japan’s newly formed parliament.
Negotiations began on March 24, 2025 and were concluded after seven rounds covering 21 issues. Following Japan’s approval of the draft in December, Bangladesh’s Advisory Council approved the EPA on January 22.
Under the EPA, Japan will grant duty-free access to 7,379 Bangladeshi products, covering 97 percent of the country’s export basket. Ready-made garments receive immediate duty-free entry under Single Stage Transformation rules, allowing Bangladesh to import fabric, manufacture garments with 30 percent value addition, and export them to Japan without duties.
Japan is already Bangladesh’s largest export destination in Asia, with annual exports of around $2 billion, mostly garments. The EPA is expected to expand apparel shipments further and help reduce the trade gap.
In return, Bangladesh will provide duty-free access to 1,039 Japanese products. Commerce Secretary Mahbubur Rahman said that under WTO principles, duty-free commitments will be phased in over 5 to 15 years, with some products taking up to 18 years. Since many items such as food products, cotton and yarn already enter Japan at zero duty, the initial revenue loss for Bangladesh is estimated at around Tk20 crore annually.
Beyond tariffs, the agreement covers services, investment, customs procedures and intellectual property rights. Bangladesh will open around 98 service sub-sectors to Japan, while Japan will open 120 to Bangladesh. Officials expect increased Japanese investment, including in textile and man-made fibre industries.
Automobiles from Japan will not receive duty-free access, as the government aims to encourage direct Japanese investment in Bangladesh’s vehicle manufacturing sector.
Officials noted that Bangladesh continues to enjoy duty-free access under its LDC status until 2029. However, the EPA provides long-term certainty for the apparel and textile sector, with up to 18 years to build capacity and strengthen competitiveness in the Japanese market.
Source: The Daily Star
Garment owners seek Tk14,000 cr soft loan before Eid
The country’s garment manufacturers and exporters have sought the urgent release of outstanding cash incentives and a Tk14,000 crore low-interest “soft loan” to help factories pay workers’ wages and bonuses ahead of Eid-ul-Fitr.
In a letter to Bangladesh Bank Governor, the Bangladesh Garment Manufacturers and Exporters Association said the support was needed to ease potential cash-flow pressure in the run-up to the festival.
In addition, BGMEA has asked for a soft loan equivalent to two months’ wages on easy terms. According to BGMEA estimates, the sector’s monthly wage bill stands at about Tk7,000 crore. That means factories would require roughly Tk1,400 crore to cover two months’ wages – the amount mentioned in the letter as the proposed soft loan.
The BGMEA has also called for special priority for small and medium enterprises, warning that SMEs may be deprived under the existing “first in, first out” system used in distributing incentives. The association said a separate mechanism is needed for SMEs and has sent a letter to the relevant ministry proposing the creation of a dedicated fund for the sector.
Source: The Daily Sun
- RMG exports fear order loss as US buyers ‘sit on the fence’ over tariff shifts
Beyond the freeze in new orders, the tariff—imposed by President Donald Trump after the US Supreme Court scrapped reciprocal tariffs—has triggered renegotiations on existing shipments.
Highlights:
- US tariff uncertainty stalls new Bangladesh export orders
- Buyers demand 2% price cuts on shipments
- Exporters warn prolonged uncertainty threatens garment sector
- US Supreme Court ruling reshaped Trump tariff measures
- Uniform 15% tariff risks eroding Bangladesh’s advantage
- Buying houses absorb costs as retailers resist sharing benefits
Bangladesh’s export momentum braces for fresh headwinds as uncertainty over the fate of the United States’ short-term 15% tariff—whether it will be extended, increased or withdrawn after five months—has prompted American buyers to pause fresh commitments.
Several US buyers are now demanding 2% price cuts on goods already in the pipeline, following the reduction of the tariff from 20% to 15%. Exporters say the move threatens to further erode already thin margins.
Buyers ‘sitting on the fence’
At least eight Bangladeshi exporters told that US clients are “sitting on the fence” amid rapidly shifting trade policies. Seven reported a clear pause in decision-making, warning that order flows will not normalise without long-term policy clarity.
Shovon Islam, managing director of Sparrow Group, said buyers are in observation mode. “They are deferring decisions until the final tariff structure becomes clear. Without certainty, long-term planning is impossible,” he said.
SM Khaled, managing director of Snowtex Group, echoed the concern. “Our current order book is secured until June, but there is deep uncertainty about what happens after the five-month window,” he said. For Khaled, whose annual exports exceed $200 million, the US accounts for 20% of total trade. The present volatility, he added, has created a procurement stalemate, with buyers reluctant to commit beyond immediate needs.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, described the situation as “unpredictable”. “Buyers are in the dark about where the tariff rates will finally land,” he said. According to him, customers are placing only minimum-volume orders, a conservative approach that could severely hurt Bangladesh’s garment exports if prolonged.
Policy volatility weighs on trade
Economists say the stop-start nature of US trade policy is amplifying risk. Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, pointed to the legal oscillation shaping US tariff measures. “The Supreme Court struck down the initial reciprocal tariffs, but the administration quickly introduced new ones under different statutes,” he noted. Because President Trump retains the authority to impose targeted or “surgical” tariffs on specific products or countries, Mustafizur warned that buyers are operating in a vacuum of uncertainty—booking orders only when unavoidable.
The US remains Bangladesh’s largest apparel market, absorbing around 20% of total garment exports.
Data from the US-based Office of Textiles and Apparel (Otexa) show that US imports from Bangladesh reached $8.18 billion in 2025, accounting for 11% of total US global apparel sourcing.
In April 2025, the Trump administration initially set a 37% reciprocal tariff on Bangladesh, later negotiated down to 20% by August. Exporters now fear that a uniform 15% tariff applied equally to all countries would wipe out Bangladesh’s relative advantage. Otexa data show that between January and November 2025, Chinese garment exports to the US fell 34%, while Bangladesh’s shipments grew 12%, alongside gains by several other major apparel exporters.
A level tariff regime, exporters argue, could reverse that trend by intensifying competition.
Buying houses squeezed as buyers seek discounts
The reduction from 20% to 15% has sparked immediate renegotiation attempts. A senior official at a Dhaka-based buying house, speaking anonymously, said the burden of adjustment would fall on intermediaries.
“We cannot push manufacturers for further discounts. We have to absorb the cuts ourselves,” he said. For his firm, which sends 90% of its shipments to the US, the financial exposure is significant.
Other agents said the weekend timing of Washington’s tariff shift left them scrambling as the US business week began, anticipating further renegotiation requests.
Source: The Business Standard
- Bangladesh’s Garment Exports to EU Rise in 2025 Despite Monthly Volatility
Bangladesh’s readymade garment (RMG) exports to the European Union recorded 5.97 per cent year-on-year growth in 2025, according to Eurostat data, earning €19.41 billion compared with €18.31 billion in 2024.
Monthly performance, however, showed significant fluctuations. Exports surged over 61 per cent in January 2025, followed by 26.64 per cent in February and 18.54 per cent in March. Growth slowed to 5.97 per cent in April, then turned negative in May with a 10.92 per cent decline. June rebounded strongly with 20.42 per cent growth, followed by 6.87 per cent in July. August saw a 7.73 per cent contraction, but September recovered with a 15.66 per cent rise. October and November recorded steep declines of 19.67 per cent and 10.87 per cent respectively, and December exports fell over 12 per cent to €1.35 billion from €1.54 billion in December 2024. The EU’s overall apparel imports in December 2025 also declined by 2.27 per cent to €6.94 billion.
Industry insiders attributed the volatility to stiff competition in the EU market, particularly from China, Vietnam, Cambodia, and Pakistan, who have increased shipments following the imposition of new US tariffs. Bangladesh maintained growth in both value and volume, with a 10.20 per cent increase in volume despite a 3.84 per cent drop in unit prices, according to Mohiuddin Rubel, additional managing director of Denim Expert Ltd.
Comparatively, China’s apparel exports to the EU fell in unit price by 9.38 per cent but increased in volume by 11.64 per cent and value by 1.17 per cent, showing a strategic focus on Europe amid challenges in the US market.
Other competitors also recorded notable growth: India earned €4.54 billion (7.99 per cent growth), Vietnam €4.37 billion (9.66 per cent growth), Pakistan €3.85 billion (9.64 per cent growth), and Cambodia €4.49 billion (14.66 per cent growth). Overall, the EU imported €89.99 billion worth of apparel in 2025, a modest 2.10 per cent increase from €88.14 billion in 2024.
Bangladesh’s garment industry, while expanding in value, faces strong competition and monthly fluctuations in the EU market, highlighting the need for strategic positioning and diversification of export destinations.
Source: The Financial Express
- Bangladesh Adds Two More LEED-Certified RMG Factories, Total Reaches 275
Two readymade garment (RMG) factories in Sreepur, Gazipur, have recently received Leadership in Energy and Environmental Design (LEED) certification, further expanding Bangladesh’s green manufacturing footprint.
MNR Sweaters Ltd earned the highest tier, achieving a Platinum rating under the LEED v4.1 Operations and Maintenance (Existing Buildings) category with 85 points. Fashion Floor BD Ltd secured a Gold rating under the LEED v4 Building Design and Construction (New Construction) category, scoring 71 points.
With these additions, the total number of LEED-certified RMG factories in Bangladesh has risen to 275. The country’s green manufacturing portfolio now includes 116 Platinum-rated and 140 Gold-rated factories. Bangladesh hosts 70 of the top 100 highest-rated LEED factories in the world, highlighting its global leadership in sustainable apparel manufacturing.
Source: The Business Standard
