Global buyers of Bangladesh’s readymade garment (RMG) products are urging policymakers to secure preferential market access under the European Union’s Generalised System of Preferences Plus (GSP Plus) scheme as the country prepares to graduate from least developed country (LDC) status in 2026.
Representatives of major international apparel brands have broadly welcomed the recent 13th parliamentary election in Bangladesh, describing the peaceful transition of power as a positive indicator for business continuity and investment confidence.
A senior industry insider noted that while sourcing operations were largely unaffected by political change in the past, buyers are now closely monitoring the new government’s trade policy direction – particularly regarding access to duty-free markets after LDC graduation. Securing GSP Plus status with the EU, which would allow continued preferential duty treatment, was described as a “game-changer” that would help the sector maintain competitiveness amid rising production costs.
Bangladesh is currently the world’s second-largest exporter of apparel, and its RMG sector has been the cornerstone of export-led growth for decades. However, graduation from LDC status typically results in the loss of automatic tariff preferences that have historically helped sustain export momentum.
Buyers and industry stakeholders emphasised that timely and effective trade diplomacy with key markets will be essential to sustain demand for Bangladeshi garments post-graduation. In addition to the EU, negotiations over United States tariff policy were cited by buyers as potentially positive for future business prospects.
Leaders of national industry bodies, including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said that prior concerns about political instability had led some buyers to hold back orders. They expressed hope that the election’s peaceful outcome will encourage increased procurement and restore confidence in Bangladesh’s export environment.
Despite optimism about GSP Plus, industry figures acknowledge that achieving this preferential status for Bangladesh will be challenging, given existing EU rules. Nonetheless, successful negotiations could enable the country to preserve market share in Europe — its largest export destination — as global competition intensifies.
