Government Draws Up Separate Strategies for 18 Countries to Boost Exports and Cut Garment Dependence

The government has moved to draw up separate action plans for 18 important trading destinations, aiming to diversify products and expand the presence of Bangladeshi goods in world markets.

For each market, a country-specific outline is being prepared, covering overall demand, trade-related complexities and barriers, the strategies of competing countries, and a list of Bangladesh’s promising products.

The list includes traditional markets such as the United States, the United Kingdom, Canada and Australia, alongside important Asian economies such as China, India, Japan, South Korea and Malaysia.

Economists and trade stakeholders see the move as highly significant, given that the centre of international trade is gradually shifting towards Asia and Bangladesh’s export growth in major Western markets has taken a hit.

In their view, cutting the risk of excessive dependence on ready-made garments, entering new products and new markets, and joining regional production and supply systems is now the need of the hour.

According to statistics, 80.62 percent of the country’s total export earnings in the 2025-26 fiscal year came from the ready-made garment sector. Such heavy dependence on one sector puts total export earnings at risk from any shock.

That risk has become clear in recent months. Over the past eight months, Bangladesh’s garment exports to the European Union market fell by 11.67 percent, and to the US market by about 6.5 percent.

Finding new markets and alternative products has therefore become essential. Meanwhile, although bilateral trade with Asia’s large economies has expanded, Bangladesh’s exports to those countries remain limited, and there is a large trade deficit.

There is, however, a hopeful sign. According to the Export Promotion Bureau, in the first quarter of the 2026-27 fiscal year, Bangladesh’s exports to China grew by 9.33 percent, to India by 5.44 percent and to South Korea by 7.29 percent.

On this economic situation, Centre for Policy Dialogue chairman Rehman Sobhan said the shift of the global economic centre towards Asia has opened a major door of opportunity for Bangladesh. To make good use of this opportunity, the country must strengthen its presence in regional markets and supply systems.

Businesspeople, on the other hand, observe that high tariff rates and a lack of trade agreements in ASEAN countries act as major obstacles. To build capacity, they say, product diversification, quality improvement and faster delivery must be ensured.

CPD distinguished fellow Mustafizur Rahman has also urged increasing exports beyond traditional products, including information technology, knowledge-based services and freelancing.

Experts believe that alongside effective country-specific strategies, removing trade barriers and creating an investment-friendly environment could significantly expand the country’s export reach in global markets.

Another sign of expansion beyond traditional markets has come from South America. In the first three months of the current 2026-27 fiscal year, from July to September, Bangladesh exported goods worth 195.17 million US dollars to 11 countries in the region.

Brazil, Chile and Peru emerged as Bangladesh’s main export destinations in the region during this period. According to the Export Promotion Bureau, exports to Brazil amounted to 70.82 million dollars in July-September. Exports to Chile were 51.87 million dollars and to Peru 24.24 million dollars.

In addition, Bangladesh exported goods worth 18.05 million dollars to Colombia, 11.63 million dollars to Uruguay and 10.28 million dollars to Argentina.

However, a large share of export earnings in this region still depends on ready-made garments, which highlights the need to increase product diversity. While garments remain the main source of Bangladesh’s export earnings there, there is scope to expand the market for jute goods, leather products, home furnishing materials, handicrafts and lifestyle products.

Identifying demand for these products and creating new buyers could both diversify export products and strengthen Bangladesh’s position in new markets.

Overall, the message is clear: separate plans for 18 countries, product diversification and the removal of trade barriers are now at the centre of Bangladesh’s export strategy. How effective this strategy proves will depend on the pace of implementation.