Bangladesh’s garment sector has defended its growth trajectory amid a probe by the United States Trade Representative, rejecting allegations of overcapacity and forced labor.
In a position paper submitted to the government, the Bangladesh Garment Manufacturers and Exporters Association stated that the expansion of production capacity has been gradual and aligned with global demand and buyer sourcing strategies.
The response follows a USTR investigation launched under Section 301 covering around 60 economies, including Bangladesh, to assess labour practices and trade policies.
BGMEA President Mahmud Hasan Khan noted that Bangladesh’s garment exports have grown steadily to $39.3 billion in FY2024–25, up from $25.5 billion a decade earlier, with a global market share of around 6.5–7 %. He emphasized that the industry remains too small to influence global pricing or distort trade.
The association also highlighted that Bangladesh mainly exports low- to mid-priced apparel items not produced in the United States, benefiting US consumers with affordable clothing rather than competing with domestic manufacturing.
Addressing subsidy concerns, BGMEA said government incentives are aimed at offsetting structural challenges such as infrastructure gaps and longer lead times, adding that such incentives have already been reduced significantly in recent years.
On labor issues, the body firmly stated that there is no forced labor in the export-oriented garment sector, citing compliance with national laws and international standards.
Commerce Secretary Mahbubur Rahman echoed the industry’s stance, saying export growth is driven by global demand and that incentives remain compliant with World Trade Organization rules.
The USTR is scheduled to hold hearings on April 28, with stakeholders expected to submit comments ahead of the deadline.
