Based on an official announcement by TBS News.
Bangladesh's ready-made garment (RMG) exports to the United States fell 8.5% during January-February 2024, according to recent data, while competing nations Vietnam and Indonesia posted growth during the same period. The decline reflects broader trade pressures, with China and India also experiencing sharp export declines. Industry exporters have attributed the contraction primarily to reciprocal tariffs imposed by major trading partners.
The RMG sector faces additional challenges on the horizon. A recent study warns that Bangladesh's apparel exports could face a 5% European Union carbon tax after 2030, potentially impacting competitiveness in key markets. Additionally, EU apparel imports experienced a sharp decline in January, disproportionately affecting Bangladesh exporters. These headwinds come as factories grapple with operational pressures, including energy constraints and wage obligations.
To support the sector, the government has implemented several measures, including releasing Tk2,500 crore in cash incentive payments ahead of Eid and facilitating loans for 80% of export-oriented RMG factories to meet February wage and bonus obligations. The National Board of Revenue (NBR) is also easing raw material sourcing for 1,100 non-bonded factories. RMG leaders have appealed for government support in transitioning to renewable energy, while discussions continue regarding strategic diesel allocation to address load-shedding challenges facing manufacturing units.
Source
Official announcement by TBS News
Published on: 05 April 2026
Original release: https://www.tbsnews.net/economy/rmg
