Bangladesh is the second-largest garment exporter after China, contributing over 80% of its total export earnings and employing 4 million workers, majority of them being women
While known for cost-effective, large-scale production, Bangladesh now faces growing competition from players like Vietnam and India, squeezing its profit margins.
US tariff policies, particularly higher levies on Asian exporters, are creating uncertainty. Vietnam faces up to 40% tariffs on transshipped goods, while India has a 50% tariff under review.
Bangladeshi factories source cotton from China, India, and local producers to manage costs. This helps minimize logistics expenses but may be insufficient for global policy shifts.
To negotiate lower tariffs, Bangladesh has made business concessions, including plans to buy 25 Boeing aircraft and import 700,000 tons of US wheat annually.
Experts question if Bangladesh's aviation sector can sustain new Boeing aircraft purchases. Political instability ahead of upcoming elections adds to trade deal risks.
Despite challenges, analysts suggest Bangladesh could gain US market share if economic and political stability are ensured.
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