B Mirror Report: Bangladesh’s garment industry has defended its growth model amid a United States investigation, saying its expansion is driven by global demand rather than excess capacity or market distortion.
Industry leaders argue that the sector remains too small globally to influence prices or disrupt trade, as US authorities review labour practices and trade policies across major exporting countries, bringing Bangladesh’s key export sector under fresh scrutiny.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said production capacity in the readymade garment (RMG) industry has expanded gradually in line with international demand and shifting buyer sourcing strategies. Despite steady growth, Bangladesh’s global market share remains modest—around 6.5 to 7 percent—limiting its ability to impact global pricing.
The BGMEA made the remarks in a position paper submitted to government authorities in response to an investigation launched by the Office of the United States Trade Representative (USTR) under Section 301(b) of the Trade Act of 1974.
The probe, initiated on March 12, covers 60 economies, including Bangladesh, and seeks to determine whether their policies and practices particularly regarding the enforcement of bans on goods produced with forced labour are unreasonable or discriminatory or restrict US commerce.
According to BGMEA data, Bangladesh’s garment exports rose to $39.3 billion in the 2024–25 fiscal year from $25.5 billion a decade earlier, reflecting steady growth without any sudden surge that could indicate overproduction.
The industry body also said Bangladesh primarily exports labour-intensive, low- to mid-priced apparel items that are not widely produced in the United States. As a result, such imports benefit US consumers by providing affordable clothing rather than harming domestic manufacturing.
On government support, the BGMEA noted that incentives, including cash subsidies, are aimed at offsetting structural challenges such as infrastructure gaps and longer lead times. It added that these incentives have been reduced significantly in recent years and that export growth is largely driven by competitiveness and integration into global value chains.
The association also rejected allegations of forced labour, stating that the sector operates under national labour laws and international standards.
Commerce Secretary Mahbubur Rahman echoed the industry’s position, saying growth is demand-driven and export incentives comply with World Trade Organization rules. A stakeholder meeting is expected next week ahead of the USTR hearing scheduled for April 28, with written submissions due by April 15.
