New Delhi, Oct 1 (SocialNews.XYZ) Bangladesh's exports of ready-made garments (RMGs) to the US has declined almost 7.55 per cent (year-on-year) in the February-July period, while the neighbouring country continues to buy US goods in the wake of a trade agreement signed earlier this year, according to a new report.
Nikkei Asia reports that exports for crucial garment sector fall as future of February trade pact remains uncertain.
“Bangladesh has ramped up purchases of US goods in the wake of a trade agreement signed in February, having signed purchasing agreements worth billions of dollars for Boeing aircraft, liquefied natural gas and grains, but its exports in the other direction have yet to see a substantial boost as it waits for the trade pact to be implemented,” the report mentioned.
While Cambodia and Indonesia recorded growth, Bangladesh's shipments to the US declined amid competition from regional suppliers, supply chain constraints and domestic energy shortages, according to latest US apparel import data.
Dhaka registered $4.65 billion in exports during the January-July period this year, compared with $4.96 billion in the same period of 2025, according to data released by the Office of Textiles and Apparel (OTEXA).
According to experts, Bangladesh has failed to capture China's diverted market share, while regional competitors capitalised on the shift.
Meanwhile, Bangladesh’s exporters are losing market share to regional rivals such as India, Vietnam and China as rising energy, financing and logistics costs erode profit margins. An earlier report from Bangladesh-based The Daily Star said exporters find it hard to absorb such a pressure because of limited scope to pass higher costs on to overseas buyers, raising the risk of lost orders and shrinking market share.
Industry estimates showed production costs surged nearly 30-40 percent over the past several years, driven by higher gas and electricity prices, wages, interest rates and exchange-rate depreciation.
Even a small difference in price can shift an order to competitors, industry leaders said, adding that escalating conflict in the Middle East and the US administration’s additional 10 percent tariffs are now adding to the pressure on exporters.
Source: IANS
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