As Donald Trump reclaims the political stage, the implications for Bangladesh’s textile industry are both complex and significant.
The “America First” agenda, with its emphasis on domestic manufacturing and protectionist trade policies, poses a dual-edged sword for Bangladesh’s ready-made garment (RMG) sector, a vital pillar of its economy.
Our newspaper on Saturday reported that the US remains a crucial market for Bangladesh’s garment exports, and any shifts in sourcing strategies by American retailers could have profound consequences.
Historically, Trump’s administration has been characterised by a focus on trade barriers and reshoring production.
While this approach may not drastically affect low-value textile items, it could lead to increased tariffs on imports, squeezing profit margins for Bangladeshi manufacturers.
As per the report, RMG industry leaders express concern over the potential loss of Generalised System of Preferences (GSP) benefits.
Without these privileges, which allow duty-free access to the US market, Bangladeshi exporters may find themselves at a competitive disadvantage compared to countries that meet stringent labour and compliance standards.
The uncertainty surrounding GSP reinstatement under Trump’s administration adds to the anxiety felt by manufacturers.
However, there is a silver lining. Previous trade tensions between the US and China have led to a diversion of orders towards Bangladesh, providing a competitive edge.
As US retailers seek to diversify their supply chains, there is hope that demand for Bangladeshi exports could rise.
Yet, this opportunity comes with the caveat that compliance with international labour and sustainability standards is paramount.
The global market increasingly demands products that reflect ethical practices, and Bangladesh must rise to this challenge.
To mitigate risks associated with over-reliance on the US market, industry experts advocate for diversification into emerging markets such as Brazil, China, and Japan.
Additionally, investments in infrastructure, skill development, and technology are essential for enhancing the resilience of the textile sector.
As Bangladesh navigates this uncertain landscape, strategic foresight and proactive engagement with US policymakers will be crucial.
By advocating for GSP reinstatement and focusing on value-added, eco-friendly products, Bangladesh can not only weather the challenges posed by a Trump-led administration but also solidify its position as a global textile leader.
The road ahead may be fraught with obstacles, but with determination and adaptability, Bangladesh’s textile industry can emerge stronger.
