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Bangladesh clothes sector hit by trade barriers, internal turmoil
DHAKA -- Double-digit growth in Bangladesh's vital garments sector has put an unexpected gloss on an industry battling U.S. tariffs, Indian trade restrictions and continued domestic political upheaval -- a perfect storm of internal and external challenges that threatens to substantially crimp that expansion.
The latest trade blow to the ready-made garments (RMG) sector, which accounts for about 80% of the country's exports and provides employment to millions, came on May 17 when India imposed restrictions on the import of certain goods, including RMGs, at land ports. That move, made in response to a Bangladeshi ban on yarn imports through the same ports, affects approximately 42% of Bangladeshi exports to India and requires the slower and more expensive use of seaports.
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Yomiuri Shimbun
3 days ago
- Yomiuri Shimbun
Head of Interim Bangladesh Govt Yunus: Election to Be Held Between Dec. 2025 and June 2026; Cotton, LNG Eyed as Bargaining Chips in Bangladesh-U.S. Trade Talks
The Yomiuri Shimbun Muhammad Yunus speaks during an interview in Tokyo on Friday. Muhammad Yunus, chief adviser of the interim government of Bangladesh, reiterated his intention to hold a general election between December this year and June next year, as calls for a December election grow. Yunus also called for more investment from 'technology-oriented industries' to help the country's development, in an interview with The Japan News on Friday. Last year in Bangladesh, student-led anti-government protests grew as a result of dissatisfaction with then Prime Minister Sheikh Hasina's iron fist rule, leading her to flee the country. The student group that led the demonstrations proposed that Yunus, founder of Grameen Bank and 2006 Nobel Peace Prize laureate, become head of the interim government. He accepted. Hasina had been prime minister since 2009. 'We had a terrible experience for over 16 years of corruption, massive amount of mismanagement and misrule,' said Yunus during the interview in Tokyo. 'And then we have to fix all these things.' He stressed the interim government needs to promote political and electoral reforms before a general election so that 'the country doesn't slip back again in the same old way.' Yunus said, 'We are [a] nonpolitical government, so [a] political government through elections should come and take the responsibility.' At the same time, he pointed out that there are certain timing issues, such as 'how much time you allocate for reform so that you can hold the election.' He said the general election will be held 'between December and June.' 'We can hold [an] election maybe, if you have less reform, by December of this year, and if you want to do more reform a little bit, then maximum June of next year,' he said. He has been in talks with political parties to hold a general election, but he does not intend to run, and said, 'I go back to my work' after the election. He emphasized the importance of Japan's support for rebuilding the country. 'After this terrible 16 years of mismanagement and corruption, everything went destroyed, damaged,' Yunus said. 'We need enormous support from Japan, and Japan has been responding very generously.' He said his country needs 'technology-oriented industries' like vehicle assembly plants. While he praised that the garment industry has propelled the Bangladeshi economy and helped it become one of the largest exporters of garments in the world, he said, 'We are so focused on the garment, we didn't pay attention to other things.' Among its population of about 170 million, the country has many young workers. Yunus said, 'You can bring all your investment here, set up your factory here, you'll have no problem with cheap labor.' 'We are inviting to produce anything from technology-oriented industries, assembly plants, any kind of assembly that China has been doing for the rest of the world,' he added. U.S. eyes more cotton exports Bangladesh, which exports a large amount of garment products to the United States, faces a 37% 'reciprocal tariff' imposed by the administration of U.S. President Donald Trump. Yunus said, 'We are looking for ways [on] how to see this as an opportunity, how to minimize any dislocation in our economy and all the future economies, so that it's not disrupted.' He said his country has been negotiating with U.S. officials, who advised Bangladesh to increase such imports from the United States as cotton and liquefied natural gas. 'What happens if you start buying from [the U.S.]? Will that ease that problem? We are looking for the packaging of the trade between the U.S. and Bangladesh,' Yunus said. 'We are hopeful that we'll find a solution to this.' After Trump returned to the presidency, the United States cut aid programs through the U.S. Agency for International Development (USAID), resulting in the suffering of Rohingya people living in refugee camps in Bangladesh. Yunus said Bangladesh has been trying to secure funds for the refugee camps from other countries. 'Since [the] USAID program has been stopped, we are looking for other countries' support like Japan, European countries – [the] European Union particularly – to replenish that so that people don't have to suffer … They are very supportive,' he said. Meanwhile, the United Nations has proposed to support Rohingya people in Myanmar through the border with Bangladesh. Yunus said: 'In principle, we said yes. In a kind of humanitarian situation where people are dying, if you want to take some goods from [the] Bangladesh side to [the] other side, I don't think Bangladesh will mind.' Yunus visited Japan to attend a forum and to meet Prime Minister Shigeru Ishiba.
Nikkei Asia
3 days ago
- Nikkei Asia
Bangladesh clothes sector hit by trade barriers, internal turmoil
DHAKA -- Double-digit growth in Bangladesh's vital garments sector has put an unexpected gloss on an industry battling U.S. tariffs, Indian trade restrictions and continued domestic political upheaval -- a perfect storm of internal and external challenges that threatens to substantially crimp that expansion. The latest trade blow to the ready-made garments (RMG) sector, which accounts for about 80% of the country's exports and provides employment to millions, came on May 17 when India imposed restrictions on the import of certain goods, including RMGs, at land ports. That move, made in response to a Bangladeshi ban on yarn imports through the same ports, affects approximately 42% of Bangladeshi exports to India and requires the slower and more expensive use of seaports.
Nikkei Asia
4 days ago
- Nikkei Asia
Japan restaurant group to train workers in Bangladesh to secure labor
TOKYO -- Japan-based restaurant group Watami will establish a center in Bangladesh to train locals in areas like farming and food service under plans announced Thursday. The company aims to send 3,000 or so people a year to Japan on "specified skilled worker" visas, 100 of whom it expects to hire in its restaurant business. The Japan Training Center will open this coming October at facilities of a Bangladeshi government agency in the capital, Dhaka.
