Lesson 3/45 min
The ready-made garment sector
Key facts
- Garments are the biggest export earner: about 81% of merchandise exports
- FY2024-25 garment exports: US$39.35 billion (81.49% of the total)
- FY2025-26: US$38.70 billion (80.62%), down 1.64% on the year before
- Largest market: the European Union as a bloc (about half of garment exports)
- Largest single country: the United States
- Owners' body: BGMEA (Bangladesh Garment Manufacturers and Exporters Association); knitwear owners' body: BKMEA
Watch out: One book says garments are ‘about 83%’. BGMEA data show 83.49% in 2017-18 and a peak of 84.21% in 2018-19; recent years are around 81-82%.
Milestones
| When | What |
|---|---|
| 1978 | First garment export, to France; the Desh Garments–Daewoo joint venture was signed on 4 July 1978 |
| 1983 | BGMEA founded |
| 31 December 2004 | The quota system (MFA) ends; quota-free trade from 2005 |
| 2010 | Industrial Police formed |
| 24 April 2013 | Rana Plaza collapses at Savar; 1,134 killed |
| 27 June 2013 | The United States suspends Bangladesh's GSP |
| 25 November 2013 | TICFA signed with the United States |
| 1 June 2020 | The RMG Sustainability Council (RSC) takes over the Accord's work |
Watch out: Quota: one book says 2004, the other 1 January 2004. In fact the MFA quota system ended on 31 December 2004, so trade is quota-free from 2005. Industrial Police: one book says 2013; several sources say October 2010. BGMEA: one book says 1977; BGMEA's own site says 1983.
GSP and TICFA
- GSP = Generalized System of Preferences (preferential market access)
- After Rana Plaza and over labour safety, the US suspended GSP on 27 June 2013; it has not been restored
- TICFA = Trade and Investment Cooperation Forum Agreement; a bilateral deal with the US, signed 25 November 2013 in Washington
Alliance, Accord and RSC
- Alliance: a group of North American brands; announced the end of its tenure in December 2018
- Accord: a pact of mostly European brands and unions, formed in 2013 after Rana Plaza
- From 1 June 2020 the RSC carries on factory inspections
Watch out: One book calls the Accord ‘UK-based’; in fact it is a pact between mainly European brands and unions.
Did you know?: On 9 February 2026 a trade deal was signed with the US: the reciprocal tariff on Bangladesh is to fall from 20% to 19%, with relief for some apparel made from US cotton or man-made fibre. The full agreement was still to be finalised.
Main garment items (FY2025-26, US$ billion)
| Item | Exports |
|---|---|
| Trousers | 12.83 |
| T-shirts and knitted shirts | 8.14 |
| Sweaters | 5.16 |
| Shirts and blouses | 2.83 |
| Underwear | 2.08 |
Memory trick: Three dates of 2013 in order: Rana Plaza 24 April → GSP suspended 27 June → TICFA 25 November.
Check yourself
When did the US suspend Bangladesh's GSP?
At a glance
- 1
Garments are Bangladesh's biggest foreign-currency earner; US$39.35 billion in FY2024-25.
- 2
Largest market: the European Union as a bloc; among single countries, the United States.
- 3
Rana Plaza collapsed on 24 April 2013 at Savar; 1,134 people died.
- 4
The US suspended GSP on 27 June 2013; TICFA was signed on 25 November 2013.
- 5
BGMEA was founded in 1983; the quota system ended on 31 December 2004.
- 6
The first garment export, to France, was in 1978.