Bangladesh's Garment Industry Seeks Stability Amid Political and Economic Turmoil

Bangladesh's garment industry, which constitutes 80% of the country's exports, is grappling with a decline in exports due to U.S. tariffs and domestic turmoil. With upcoming elections, industry leaders are urging for policy stability and competitive costs as the U.S. agrees to a new trade deal offering some relief.

Millions of Bangladeshi garment workers and their employers are poised to vote on Thursday, with hopes pinned on a new government to salvage the country's largest industry. The sector has seen six consecutive months of declining exports due to U.S. tariffs and domestic political unrest.

As the backbone of Bangladesh's economy, the garment industry accounts for 80% of the nation's exports. It employs nearly four million workers, predominantly women, supplying major global brands. Leaders in the industry stress the urgent need for long-term policy stability and competitive energy costs to ensure sustainability.

Amid this economic challenge, a new trade deal with the U.S. provides some hope by offering duty-free access to a certain quota of exports. However, the full impact will hinge on the implementation of pricing and quota systems, alongside efforts to diversify beyond garment production.