Bangladesh’s readymade garment (RMG) exports to the European Union declined by 3.98% in the seven months to January, industry data show, signalling growing competitive pressures in key markets amid softer global demand.
According to figures from Bangladesh’s Export Promotion Bureau (EPB), total garment shipments to the EU’s 27 member states fell to US $ 11.34 billion in the period from July to January, down from US $ 11.81 billion in the same period a year earlier. The EU remains the country’s single largest regional market for apparel exports, accounting for nearly half of total RMG shipments.
Industry representatives attributed the downturn to increased competition from China and India, both of which have redirected exports to Europe after facing higher tariffs in the United States, intensifying price competition for Bangladeshi suppliers. At the same time, global consumption of apparel has weakened, further straining export performance.
Shehab Udduza Chowdhury, Vice-President of the Bangladesh Garment Manufacturers and Exporters Association, said that global apparel consumption remained slow and that Chinese and Indian manufacturers were negotiating orders in Europe at lower prices, placing Bangladeshi exporters at a competitive disadvantage. He added that buyers tended to source from regions offering the lowest prices, resulting in a loss of market ground.
Exports to several major EU markets declined over the period, with shipments to Germany, Bangladesh’s largest destination within the bloc after the United States, falling by around 11%. Other markets reporting decreases included France, Denmark, Italy and Sweden. However, exports to Spain, the Netherlands and Poland registered increases over the same period.
Chowdhury also warned that upcoming trade developments could further challenge Bangladesh’s competitiveness, noting that India’s new free trade agreement with the EU could allow Indian exporters to ship garments into the European market with duty-free benefits, potentially intensifying competition for Bangladeshi producers in the future.
The decline in EU exports comes against a backdrop of broader shifts in global apparel trade, with rival markets seeking to gain share amid tariff changes and evolving trade agreements.
