Bangladesh–Australia trade talks open new window for garment market expansion
Bangladesh has taken a renewed policy initiative to explore a possible free trade agreement (FTA) or economic partnership agreement (EPA) with Australia as part of its broader strategy to diversify export markets and strengthen its post-LDC graduation trade positioning.
At a coordination meeting held on 19 November at the Ministry of Commerce, senior officials and industry representatives discussed Bangladesh’s strategic priorities for future trade agreements, with particular emphasis on the potential EPA with Australia. The session was chaired by the Commerce Secretary and attended by key stakeholders from the export-oriented manufacturing sector.
During the discussion, Faisal Samad, Director, BGMEA, highlighted the structural gap Bangladesh faces in the Australian apparel market, despite being the world’s second-largest garment exporter. According to his presentation, China currently accounts for around 57% of Australia’s garment imports, while Bangladesh’s share stands at approximately 11%.
He noted that bridging this gap will require a coordinated national effort rather than isolated private initiatives. Over the next decade, Bangladesh should set a strategic target to at least double its market share in Australia, supported by integrated government policy, active economic diplomacy, and structured engagement between the public and private sectors.
Currently, much of Bangladesh’s market penetration in Australia has been achieved through individual entrepreneurial efforts. However, for sustainable and large-scale expansion, a more organised national framework is needed. The Ministry of Commerce, as the lead ministry, could take a central role in aligning efforts with the Ministry of Foreign Affairs, Export Promotion Bureau (EPB), and BGMEA to develop a comprehensive trade and market access masterplan.
The meeting also outlined several strategic priorities to strengthen Bangladesh’s value proposition in the Australian market. These include reinforcing backward linkage industries to reduce import dependency, diversifying cotton sourcing channels to manage supply risk, and accelerating the shift towards man-made fibre and wool-based product segments in response to evolving Australian consumer demand.
Industry participants emphasised that future trade negotiations should not only focus on tariff reduction, but also include cooperation on standards, sustainability compliance, and supply chain transparency—areas increasingly critical for Australian retailers and brands.
The Commerce Ministry decided that a series of follow-up meetings will be held to further refine Bangladesh’s position on the proposed Australia EPA. BGMEA is expected to present a detailed sector-specific roadmap in the next session, focusing on export scaling opportunities, product diversification, and investment requirements.
If executed strategically, a Bangladesh–Australia FTA/EPA could support long-term export resilience, reduce overdependence on traditional markets, and strengthen Bangladesh’s competitiveness as it prepares to graduate from LDC status.
