As the largest exporter of Bangladesh’s RMG products, any trade policy changes made by the US directly affects our economy. Much has been discussed about US President Elect Donald Trump’s potential tariffs on imports from China, and if the proposed tariffs do pan out, it would present Bangladesh with a golden opportunity that we absolutely cannot squander.
China, as it stands, is the largest exporter of apparel in the world. Any import tariffs on China, then, would mean a significant vacuum which will need to be filled in the US’s demands for RMG goods, which is where Bangladesh comes in. The US is already the largest export destination when it comes to our RMG sector and the interim government could leverage the medium term gains from the US’s tariffs on Chinese exports to not only boost our RMG exports in the short term but to also pave the way to the reinstatement of Bangladesh’s long-lost position in the generalized system of preferences (GSP) system.
Our RMG sector has come far in the span of a decade, far from the days of Rana Plaza and Tazreen Fashion; the industry now stands as a pillar of worker safety and sustainable practices. Indeed, the cost of greening up an industry of such size and scope is not cheap, and the ball has long been in the court of foreign buyers who deal with our RMG sector. The US tariffs then give us a further opportunity to potentially build on our existing trade deals with the country, with the ultimate goal of the GSP being reinstated.
