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Bangladesh Garment Industry Cautiously Optimistic After Elections

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  Published in Politics and Government on Wednesday, February 11th 2026 at 11:07 GMT by reuters.com
      Locales:

DHAKA, Bangladesh - February 11, 2026 - Bangladesh's vital garment industry, the engine of the nation's economy, is cautiously optimistic following the recent parliamentary elections. While the victory of the Awami League, led by Sheikh Hasina, provides a degree of predictability, the sector remains acutely aware of significant hurdles - notably escalating trade tariffs and a history of social and political unrest - that threaten its long-term sustainability.

The garment sector represents an astounding 80% of Bangladesh's total exports, making it fundamentally important to the country's economic wellbeing. The past year has been particularly challenging, marked by the implementation of new tariffs by key trading partners, most notably the United States, combined with a wave of protests that culminated in December's tragic violence. These factors have collectively squeezed profit margins, disrupted production schedules, and discouraged much-needed foreign investment.

Shahidullah Azim, Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), expressed a cautious optimism: "The election results offer a glimmer of hope. We desperately need a stable government capable of proactively addressing the multifaceted challenges facing our industry and ensuring its continued viability." This sentiment is widely echoed throughout the sector, with factory owners and workers alike yearning for a period of sustained growth and stability.

The Awami League's victory, while decisive, has been shadowed by allegations of irregularities, drawing criticism from international observers and raising questions about the election's legitimacy. Regardless of these concerns, the continuation of a known administration presents a level of predictability that is highly valued by businesses operating in a globalized market. The industry needs to be able to forecast the regulatory environment, and the continuation of the Awami League offers some reassurance in that regard.

However, the path forward is far from clear. The U.S. tariffs remain a significant impediment to growth. These tariffs weren't imposed arbitrarily; they are a direct response to ongoing concerns regarding human rights and labor practices within Bangladeshi factories. Mitigating or reversing these tariffs will demand substantial and demonstrable improvements in worker safety, fair wages, and overall working conditions. Simply appealing to trade partners won't suffice; the government must enact and enforce meaningful reforms.

"The government needs to make a firm commitment to prioritizing labor rights and environmental standards to rebuild international trust," Azim emphasized. "Today's buyers, particularly in Western markets, are increasingly meticulous in their scrutiny of suppliers' social and environmental performance. Compliance is no longer optional--it's a prerequisite for accessing lucrative export markets."

Beyond the immediate tariff concerns, the garment sector is acutely aware of the long shadow cast by the 2013 Rana Plaza building collapse. The disaster, which claimed the lives of over 1,100 garment workers, served as a stark reminder of the systemic safety lapses prevalent within the industry. In the aftermath, international organizations and consumer brands collaborated to implement initiatives like the Accord on Fire and Building Safety in Bangladesh, which significantly improved factory conditions. However, maintaining and expanding upon these improvements requires continuous investment and vigilant oversight.

Recent reports indicate a worrying trend: a slowing pace of remediation efforts in some factories, coupled with concerns about the independence of monitoring bodies. The BGMEA and the government are under pressure to ensure that the gains made in worker safety are not eroded. Furthermore, the sector faces growing pressure to address environmental concerns, including water pollution, waste management, and the use of sustainable materials.

Looking ahead, several key areas demand immediate attention. First, the government must engage in constructive dialogue with the United States and other trading partners to negotiate a pathway for tariff reduction. Second, investing in worker training and skill development is crucial to improving productivity and competitiveness. Third, promoting the adoption of cleaner production technologies and sustainable materials is essential for mitigating the environmental impact of the garment industry. Fourth, strengthening regulatory oversight and enforcement mechanisms is paramount to ensuring compliance with labor standards and safety regulations. Finally, fostering a culture of social dialogue and collaboration between the government, employers, and workers is vital for building a sustainable and equitable garment sector.

The coming years will be pivotal for Bangladesh's garment industry. The election provides an opportunity to reset and chart a course toward a more sustainable and responsible future. However, realizing this potential will require bold leadership, decisive action, and a commitment to addressing the complex challenges that lie ahead.