As Bangladesh strives to sustain its export momentum, a growing concern is emerging over the country's heavy reliance on a narrow group of key markets.
According to data from the Export Promotion Bureau (EPB), nearly 70 per cent of Bangladesh’s total exports, worth $48.28 billion in FY2025, came from only ten countries, signalling a deepening dependence on traditional trade partners.
The top export destinations for Bangladeshi goods in FY2025 were the United States, Germany, the United Kingdom, Spain, France, Italy, Canada, India, the Netherlands, and Poland.
US remains top market
The United States continues to be Bangladesh’s largest export partner, importing goods worth $8.69 billion, or 18 per cent of the country’s total exports – an increase of 14.38 per cent compared to the previous fiscal year.
The apparel sector alone contributed $7.54 billion, reflecting a 13.79 per cent growth.
Germany followed as the second-largest market with imports totalling $5.29 billion (10.96 per cent of total exports), up 9.11 per cent from FY2024.
Exports to the UK rose modestly by 3.23 per cent, reaching $4.62 billion, or 9.57 per cent of total exports.
Spain imported $3.55 billion (7.36 per cent), while France took $2.42 billion (5 per cent). Italy, Canada, and other major markets also remained significant contributors: Italy – $1.66 billion (3.45 per cent), Canada – $1.42 billion (3.03 per cent); Netherlands – $2.35 billion (4.87 per cent), Poland – $1.82 billion (3.78 per cent); and India – $1.76 billion (3.65 per cent).
Warning signs over lack of diversification
Despite repeated calls for market diversification, Bangladesh’s export basket remains concentrated in developed Western economies.
Dr Mohammad Abdur Razzaque, Chairman of the Research and Policy Integration for Development (RAPID), warned that this overreliance poses serious risks, especially as some of these markets –particularly the US – are tightening trade policies.
“A large share of our export earnings still comes from just a few sectors—mainly ready-made garments (RMG), agriculture, and leather,” he said, “We lack alternative products to tap into new markets. For instance, to gain a foothold in Middle Eastern countries, exporters need to offer a wider range of goods beyond traditional apparel.”
While there is some demand for food and agro-products, it mostly caters to the Bangladeshi expatriate community, said Dr Razzaque highlighting the potential of exploring emerging, non-traditional markets such as Japan, Australia, India, and other Asian countries to diversify Bangladesh’s export destinations. He stressed that increased policy support and targeted incentives are crucial to reducing the country's overreliance on a limited number of major markets.
"Bangladesh needs to rethink its export strategy," he said. "Our main products – ready-made garments, leather, and agricultural goods – limit our ability to break into new markets. We must expand our product portfolio and target regions like Asia, the Middle East, and Africa."
He emphasised the need for policy support and targeted incentives to promote non-traditional exports and explore opportunities in countries such as Japan, Australia, and India, which have growing consumer bases.
US tariff threat looms large
Recent developments in global trade have heightened concerns. The US government recently imposed a 35 per cent reciprocal tariff on certain Bangladeshi goods, raising the total effective tariff to over 50 per cent in some sectors.
“We need to rethink our strategy to adapt to the new tariff regime,” said Dr Razzaque, adding that one immediate response should be to find ways to reduce production costs to remain competitive.
Fazle Ehsan Shamim, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), acknowledged the vulnerability of exporters to shifts in US trade policy.
"We are working hard to explore non-traditional markets, but it’s not easy," Shamim said. “The US remains crucial because of its massive purchasing power. Still, we must accelerate our efforts to reduce dependency.”
He urged the government to strengthen policy support, ensure affordable utilities, continue existing export incentives, and negotiate bilateral trade agreements to gain better access to untapped markets.
SM Khaled, Managing Director of Snowtex Group, noted that while Bangladesh cannot ignore economic powerhouses like the US, Germany, and France due to their large markets, the private sector is actively exploring emerging economies to balance export flows.