US stays BD’s top export destination, new markets expanding

Bangladesh is breaking new ground in market diversification with robust trade growth elsewhere while the United States stays as its single-largest export destination with a 14.38-percent annualised growth in the just-past fiscal year.

Non-traditional markets like the Netherlands, Sweden and Mexico, meanwhile, showed robust growth, according to data from the Export Promotion Bureau (EPB) -- indication that much-envisaged market diversification shows promise.

According to the latest data on top 20 export destinations, exports to the United States totalled $8.69 billion during the past July-June period, up from $7.60 billion a year earlier.

The US accounted for over 18 per cent of Bangladesh's total export earnings of $48.28 billion in FY25.

Germany and the United Kingdom followed as the second-and third-largest export destinations, receiving $5.29 billion and $4.62 billion worth of goods respectively. Exports to Germany grew by 9.11 per cent while to the UK by 3.23 per cent.

Among the fastest-growing markets, the Netherlands stood out with a 21.72-percent year-on-year growth, reaching $2.35 billion. Sweden and Mexico also recorded impressive growth rates of 15.66 per cent and 15.45 per cent respectively, indicating growing diversification in Bangladesh's export destinations.

India, another emerging destination, imported $1.76 billion worth of goods, up by 12.43 per cent year on year. Meanwhile, exports to Canada and Belgium increased by 11.26 per cent and 10.72 per cent respectively.

However, in top 20 destinations, exports to some emerging markets declined in the last fiscal year. Earnings from China dropped by 2.92 per cent to $694.49 million, while exports to Russia plummeted by 10.24 per cent to $353.96 million. Exports to South Korea also slipped, by 5.89 per cent, although export to Korea registered a big growth in FY24.

The EPB data suggest that while Bangladesh continues to rely heavily on traditional markets in North America and Europe, its outreach to newer or previously smaller markets is gaining traction.

As per the data, renaming countries, calculated under 'others' category comprising non-major markets, grew by 8.30 per cent and accounted for over $7.18 billion in exports.

In general, all destinations excepting the European Union, the United States, Canada, and the United Kingdom are considered non-traditional markets.

Exporters and policymakers view this diversification as critical for reducing dependency on a few key markets and ensuring resilience amid global economic shifts.

In such trade transition, small markets become second-largest collective bloc.

In addition to strong gains in traditional destinations, Bangladesh's exports to 'other markets' -- those outside the top 20 trading partners -- grew by 8.30 per cent year on year, totalling $7.18 billion in FY 2024-25, up from $6.64 billion in FY24.

This group accounted for nearly 15 per cent of total exports, underscoring the country's strategic pivot toward new regions across Africa, Latin America, Southeast Asia, and the Middle East.

The other markets contributed roughly 14.88 per cent to Bangladesh's total exports in FY25 -- making it the second-largest collective bloc, after the US.

Trade experts say this growth validates government incentives under the Export Policy 2021-2024, which aims to reduce overdependence on North America and Western Europe by encouraging market exploration in underrepresented regions.

Talking with The Financial Express, Dr M. Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, said exports to Russia declined due to the ongoing war.

He further explains that "trade and financial mechanisms with Russia have been disrupted due to sanctions on a large portion of Russian banks and financial institutions".

Dr Reaz also mentions that China is currently experiencing deflationary pressure, with local manufacturers offering their products at very low prices to domestic consumers. "As a result, exports to China may be affected."

He notes that local Chinese producers are now more competitive than those from other countries.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan Babu details their efforts for both market and product diversification for the biggest export earner of the country to navigate possible headwinds.

About non-traditional markets he says, "There are some issues in the non-traditional markets, which is why we sometimes see a good growth, in some cases see a decline."

He has emphasized the need to work seriously on boosting exports to non-traditional markets as part of their broader goal to diversify export destinations.

"We are also working on product diversification," he added.

Babu also mentions that there is a good number of work orders in hand, which indicates that apparel exports have the potential to grow further.

However, he notes that cashing in on this opportunity depends on the smooth supply of gas and electricity, alongside cooperation from government agencies and supportive policies.

newsmanjasi@gmail.com