US and Bangladesh signed Trade Deal: Growing Challenges for Pakistan

Good news!

"The USA and Bangladesh signed a reciprocal trade deal on 9th February, 2026. Under this deal, 7,132 US commodities will get duty-free access in Bangladesh, and 2,500 Bangladeshi commodities will receive duty-free access in US markets. However, this agreement links the tariff concession for Bangladeshi garment exports with US-produced cotton or man-made fibre. To put it simply, preferential access to Bangladeshi garments will be provided if Bangladesh agrees to use US-produced cotton in its apparel production. This agreement could strengthen Bangladesh’s position in the USA market; however, it carries broader implications for Bangladesh and regional trade dynamics.

Bangladesh is one of the key markets for Pakistan’s cotton and cotton-related products. Alone in 2024, Pakistan exported $395 million worth of heavy pure cotton, heavy mixed woven cotton ($76.8 million) and heavy mixed woven cotton ($76.2 million). Since the tariff concession for garment exports is linked to the use of American cotton, the Bangladeshi manufacturers have a strong incentive to shift towards the US Market. After this agreement, Pakistan’s textile products will face enhanced competition in the US markets."

US and Bangladesh Trade Deal: Growing Challenges for Pakistan

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Bangladesh ready to topple China as top clothing exporter to EU

Good news! One country's loss is another country's opportunity! Competition is good!

Prosperity and higher living standards for one of the long time poverty stricken countries of the world!

"Bangladesh's massive clothing industry is looking to grab China's crown as the top garment exporter to the European Union, as shifting supply chains in the wake of the conflict in Ukraine and other global geopolitical tensions drive up orders to the densely populated South Asian nation.

Boosting shipments to Europe will bolster a crucial part of Bangladesh's economy, with ready-made garment (RMG) manufacturers already contributing around a fifth of the country's gross domestic product and more than 80% of its export earnings."

Bangladesh ready to topple China as top clothing exporter to EU - Nikkei Asia Garment industry is crucial to South Asian nation's economy