Bangladesh’s ready-made garments (RMG) have historically found a home in Canada. Bangladesh has had duty-free access to Canada for its exports since January 2003. Despite these benefits, exports to the nation are still below their potential, which means there is still much space for expansion.

The Bangladesh Business Chamber of Commerce in Canada (BBCCI) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have inked a memorandum of understanding (MoU) to increase exports.

Under the agreement, the BBCCI will not only help increase direct exports but also facilitate Canadian investment in Bangladesh. The organization will promote investment opportunities between the two countries in the apparel, textile, and related sectors, and support both individual and joint partnership initiatives among members. Additionally, BBCCI will help organize trade fairs, exhibitions, and business delegations, and promote Bangladeshi apparel and textile products across Canada and other North American markets.

The MoU was signed on Thursday at the BGMEA headquarters in Uttara, Dhaka, by BGMEA President Mahmud Hasan Khan and BBCCI President Almgir M. Rahman. Present at the event were BGMEA First Vice-President Selim Rehman, Senior Vice-President Enamul Haque Khan, Vice-Presidents Md. Rezwan Selim and Mizanur Rahman, and Directors Faisal Samad and Nafis-Ud-Dowla, among others.

According to data from the Export Promotion Bureau (EPB), despite its strong potential, only about 3.5% of Bangladesh’s total apparel export earnings come from Canada — roughly $1.5 billion annually. In the first quarter of the current fiscal year, Bangladesh exported $340 million worth of garments to the country. However, given Canada’s large market and Bangladesh’s duty-free status, this amount is considered relatively small. Bangladesh accounts for less than 14% of Canada’s total apparel imports.

At the signing event, BGMEA President Mahmud Hasan Khan said the MoU with BBCCI will help unlock new export opportunities in Canada and across North America.

It is worth noting that even after graduating from Least Developed Country (LDC) status, Bangladesh will continue to receive duty-free access to the Canadian market for 10 more years, similar to other LDC graduates. Canada’s House of Commons has already approved this extension. Currently, 49 countries, including Bangladesh, fall under this duty-free scheme, whose previous term expired on December 31 of last year but has since been renewed for another period.