Bangladesh garment export to the European Union is entering a challenging phase as a wave of competitors intensifies its presence in the region. The shift is largely driven by the new tariff barriers imposed by the United States, prompting major apparel producers to redirect their shipments toward Europe. For Bangladesh, which commands over one fifth of the EU apparel market, the rising inflow of cheaper products from China, Vietnam, Cambodia and Pakistan is creating a crowding-out effect that exporters say is now more visible than ever.
Fresh trade data reflects a sharp surge in China focus on the EU. From January to June 2025, China shipped an average of 1.87 billion euros worth of garments each month, which climbed to 2.82 billion euros during July to September. This brought its total earnings in the first nine months of the year to nearly 19.76 billion euros. Bangladesh, meanwhile, maintained an average monthly export range between 1.64 and 1.71 billion euros across the same period.
Although Bangladesh recorded 15.25 billion euros in export earnings from January to September, marking a healthy 13.17 percent rise from last year, monthly performance struggled to reach the March peak of 2.11 billion euros. Exporters acknowledge that the decline in key months reflects the growing pressure from competing nations, many of which have accelerated their EU shipments after facing tariff hurdles in the US.
Industry leaders point to deep structural gaps between Bangladesh and China. They highlight China advanced port facilities, smooth energy supply, and higher productivity, which allow faster response to market shifts. As competitors sharply reduce prices to gain ground in Europe, Bangladesh finds itself squeezed by narrowing margins and long-standing issues like high lead time and rising production cost.
The EU import data paints an equally competitive landscape, with rising volumes and falling unit prices. Cambodia, Pakistan, India and Vietnam have all posted strong growth in both shipments and value. For Bangladesh, the challenge now lies in safeguarding its position in a market where competition grows wider, faster and more determined every month.
11:51 AM, Nov 17
Source : Rising Tide of Rivalry Reshapes Bangladesh Path in EU Apparel Market