Multiple factors, including stagnation in trade and commerce, US tariff policies, and aggressive export strategies by China and India, have contributed to a slowdown in global export markets. Bangladesh’s main export item — ready-made garments (RMG) — is also on a downward trend. Although exports to a few non-traditional markets, such as China, Malaysia, Brazil, Saudi Arabia, and the United Arab Emirates, have shown some growth, most markets are declining. This picture emerges from data released by the Export Promotion Bureau (EPB) for the first eight months (July 2025–February 2026) of the current fiscal year.

Bangladesh’s RMG export markets are broadly divided into two categories. Primary or traditional markets include the United States, Canada, the United Kingdom, and countries in the European Union, which together account for around 85 percent of total apparel exports. All other destinations are considered non-traditional markets.

According to recent EPB data, RMG exports to EU countries declined by 5.49 percent during the first eight months of the current fiscal year, totalling around $12.68 billion. In the same period of FY 2024–25, exports stood at around $13.42 billion.

The United States remains Bangladesh’s largest single export destination, accounting for nearly 20 percent of total apparel exports. However, exports to the US also declined in FY 2025–26. In the first eight months, shipments to the market totalled about $5.03 billion, compared to around $5.06 billion in the same period of the previous fiscal year, marking a 0.74 percent decrease.

Despite declines in the EU and US markets, exports to two other major traditional markets, Canada and the United Kingdom, increased by 3.08 percent and 1.22 percent, respectively.

Markets beyond these four are categorised as non-traditional destinations for Bangladesh’s apparel, including Australia, Brazil, China, and India. EPB data show that while some of these markets posted positive growth, most experienced declines. Japan, the largest non-traditional market for Bangladesh’s apparel exports, recorded a 5.38 percent drop during the period. Exports to Japan totalled $794.2 million, down from $839.4 million in the same period of the previous fiscal year.

Australia, the second-largest non-traditional market, saw a 12.68 percent decline. Exports to the country stood at $508.4 million in the first eight months of the current fiscal year, compared to $852.2 million in the corresponding period of FY 2024–25.

India, the third-largest non-traditional market, also registered a decline of 9.74 percent. Apparel exports to India totalled $431.6 million during the period, down from $478.1 million a year earlier.

In terms of growth rate, exports declined the most to Russia among non-traditional markets. During the first eight months of the current fiscal year, apparel exports to the country fell by 29.17 percent. Exports totalled around $153.9 million, compared to $217.3 million in the same period of the previous fiscal year. Exports also declined to Turkey by 24.38 percent, Mexico by 16.68 percent, and South Korea by 12.76 percent.

In contrast, China recorded the highest growth among non-traditional markets, at about 21.51 percent. Exports to China rose to approximately $178 million during the first eight months of the current fiscal year, up from $146.4 million in the same period last year. Exports also grew by 21.46 percent to Saudi Arabia, 16.4 percent to Malaysia, 15.68 percent to the United Arab Emirates, 11.5 percent to Brazil, and 9.59 percent to South Africa. Export volumes to these countries ranged between $80 million and $190 million during the period.

Overall, exports to non-traditional markets declined by 6.34 percent. Bangladesh exported $4.24 billion worth of apparel to these markets in the current fiscal year, compared to around $4.52 billion in the same period of the previous fiscal year.

Amid global instability, the ready-made garment sector is losing ground not only in traditional markets but also in non-traditional ones. Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) believe domestic factors are also contributing to the slowdown. Speaking to Bonik Barta, he said, “Our exports are declining across both traditional and non-traditional markets. Global instability, including conflicts and higher tariffs, has slowed export growth. At the same time, the domestic business environment has deteriorated, with high interest rates adding pressure. While tariffs may have reduced growth in major markets, the closure of several factories at home has also affected our ability to export garments efficiently. This impact is now visible in non-traditional markets as well.”