B Mirror Report: Global readymade garment (RMG) buyers have largely welcomed Bangladesh’s 13th parliamentary election, describing the smooth transition of power as a positive signal for business continuity. However, they are now focusing on securing preferential market access as the country prepares to graduate from least developed country (LDC) status.

Industry insiders say buyer confidence and proactive trade diplomacy will be key to sustaining export growth in the post-graduation period. As the world’s second-largest apparel exporter, Bangladesh has already engaged with development partners and major markets to ensure a smooth transition.

A representative of a leading global apparel brand told The Financial Express that the company’s headquarters was “very happy” with the peaceful transfer of power, which helped ease concerns among international stakeholders. He noted that business trends in Bangladesh remain positive and in line with earlier projections, adding that past political transitions did not disrupt sourcing operations.

The only major disruption in recent years, he said, was the 2024 labour unrest in Ashulia, which temporarily affected production and shipments.

Buyers are now closely monitoring the new government’s policy direction, particularly regarding trade preferences. Securing continued duty-free access to the European Union (EU) market after LDC graduation has been described as “game-changing” for the apparel sector.

As Bangladesh is set to graduate from LDC status by 2026, obtaining the EU’s GSP Plus facility is seen as a major opportunity to maintain competitiveness amid rising production costs. International retailers expect the new political leadership, especially the BNP, to actively pursue such trade arrangements in line with earlier commitments to support export-oriented industries.

Another brand representative said the recent parliamentary election was among the most peaceful he had witnessed in his 30-year merchandising career.

An American brand official highlighted strong demand in the EU market across all apparel categories—from children’s wear to men’s and women’s garments—and expressed optimism that the election outcome would boost confidence at global headquarters, potentially increasing sourcing from Bangladesh.

He also noted that negotiations on US tariffs could positively impact business, while successful talks with the EU would help Bangladesh retain its strong foothold in the European market even after graduation.

Shehabudduza Chowdhury, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said many buyers had earlier indicated a preference for a democratic government and stable political environment. Some had reduced orders due to concerns over potential election-related unrest, leading several factories into financial strain over the past 18 months.

He expressed hope that buyers would now increase orders following the peaceful election and added that the new government should appoint qualified, non-political individuals to key business-related ministries.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem said some buyers were hesitant to visit Bangladesh ahead of the polls but are now expected to return following the smooth transition.

However, he cautioned that current European Commission rules do not automatically grant GSP Plus status to Bangladesh, and revising those provisions could be challenging. He also noted that some apparel exporters prefer delaying LDC graduation, mentioning that there had even been discussion about stepping back from the move shortly before a recent deadline.