Bangladesh’s long-held strong position in the European Union apparel market has weakened, according to recent Eurostat and Export Promotion Bureau data. Despite overall EU apparel imports rising 2.10% in 2025 to reach USD 90 billion, average unit prices fell 10.27%. Bangladesh’s exports to the EU totaled USD 9.46 billion in the first half of fiscal year 2025–26, down 4.14% from the same period a year earlier. In December 2025 alone, export earnings dropped 12.05% year-on-year as prices fell despite stable shipment volumes.

Analysts attribute the intensified competition to exporters from several countries redirecting goods to Europe after the United States imposed higher tariffs on multiple nations. This surge in supply has driven down prices and increased pressure on Bangladeshi exporters. The situation is further complicated by the newly announced India-EU free trade agreement, which will eliminate around 12% tariffs on Indian apparel once it takes effect in 2027, giving India a cost advantage.

Industry leaders from BGMEA and EAB warned that without timely policy support, efficiency upgrades, and product diversification, Bangladesh risks losing market share in Europe to more aggressive competitors such as China, India, and Vietnam.