BGMEA urges govt to sign trade deals with major partners

Garment manufacturers have urged the government to pursue free trade agreements and economic partnership agreements with the European Union, the UK, Japan, and Canada alongside other potential trading partners.

The deals are required for retaining preferential trade benefits once Bangladesh attains the status graduation from a least developed country (LDC) to a developing one in November 2026, said the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

The BGMEA leaders said this in response to queries from a visiting delegation of the International Monetary Fund (IMF) during a meeting at the BGMEA office in Dhaka yesterday.

The leaders informed the IMF delegation that the current BGMEA board has already recommended that the government take several measures.

These include ensuring an uninterrupted supply of electricity and gas to industries, improving port efficiency, simplifying customs and bond procedures, reducing interest rates to a single digit, and expediting key infrastructure projects such as the Dhaka-Chattogram Highway.

The IMF delegation met with BGMEA President Mahmud Hasan Khan to discuss Bangladesh's preparedness for LDC graduation and other economic issues.

They also discussed the potential impact of US reciprocal tariffs on garment exports, the implications of LDC graduation, strategies for sustainable industrial growth and diversification into value-added products, and the possible effects of the evolving global economic landscape.

The BGMEA leaders highlighted the industry's contribution to the national economy and shared insights into various aspects of the sector, according to a statement from the association.

They outlined the industry's strategic vision, noting that it is transitioning from a labour-intensive model to a higher-value model driven by innovation, value addition, and technological advancement.

As part of this transformation, the industry is focusing on expanding its capacity in man-made fibre and technical textile-based apparel, as well as improving workers' skills.

Both parties also discussed measures to reduce the cost of doing business and improve the ease of doing business in Bangladesh, the BGMEA statement added.