U.S. Trade Representative Brendan Lynch and Trade Policy Analyst for South and Central Asia Emily Ashby met with the leadership of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at a hotel in Dhaka on December 10.

The meeting focused on key issues of bilateral trade, with particular emphasis on the U.S.-Bangladesh Trade and Investment Cooperation Forum Agreement (TICFA).

The BGMEA delegation was led by Administrator Anwar Hossain and included former BGMEA President Faruque Hassan, former Senior Vice President Abdullah Hil Rakib, BGMEA Support Committee Members Inamul Haq Khan Bablu, Asif Ashraf, and ANM Saifuddin.

During the meeting, BGMEA Administrator Anwar Hossain provided an overview of the remarkable progress made by Bangladesh’s ready-made garment industry in recent years.

The BGMEA leaders also highlighting progress made by the industry in workplace safety, workers’ rights, labor law reforms, and environmental sustainability.

They also reiterated the industry’s commitment to continuing its efforts to ensure the RMG sector grows responsibly while meeting international standards.

Both U.S. and BGMEA representatives expressed commitment to continued collaboration, working towards a more sustainable and worker-friendly future for Bangladesh’s RMG sector. The meeting underscored the importance of productive dialogue through TICFA to further enhance bilateral trade and investment opportunities.

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During the meeting, they had productive discussions on strengthening bilateral ties and exploring new opportunities for collaboration between Italy and Bangladesh, particularly in the ready-made garment industry.

The two sides also discussed possible ways to increase Bangladesh’s apparel export share in the Italian market, particularly in the high-end product segment, an area where Bangladeshi manufacturers are investing heavily.

BGMEA Administrator Anwar Hossain provided an overview of the significant transformations taking place in Bangladesh, highlighting the Interim Government’s efforts to create a more business-friendly environment to attract foreign investment.

He also highlighted the remarkable progress made by Bangladesh’s RMG industry in terms of environmental sustainability. Bangladesh now boasts the highest number of green garment factories in the world, which reflects the sector’s commitment to sustainable production practices.

He also urged the Ambassador to encourage Italian businesses to explore investment opportunities in emerging sectors in Bangladesh, including the non-cotton textile industry.

Ambassador Antonio Alessandro emphasized the untapped potential between the two countries and suggested further engagement to identify and capitalize on opportunities for boosting trade and investment.

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In light of the upcoming EU and global North regulations, Bangladesh’s RMG industry has been proactive. BGMEA is taking the lead as the parent organization for Bangladesh RMG sector. The BGMEA has established the Responsible Business Hub (RBH) within our premises, which plays a pivotal role in preparing the industry in adapting to these changes. The RBH focuses on capacity-building through targeted trainings, ensuring that factories are well-equipped to meet the stringent sustainability requirements. Additionally, the Hub is committed to continuous monitoring of factories, helping them to not only comply with but also exceed the upcoming regulations.

Moreover, BGMEA’s Digital Data Disclosure Platform, which has yet to be launched, is a groundbreaking tool designed to facilitate industry-wide data collection on environmental, social, and governance (ESG) metrics. This platform is set to become an essential resource for tracking and reporting on sustainability practices across the industry, ensuring transparency and accountability.

Our engagement in circular economy initiatives is another critical area of focus. BGMEA is actively participating in the SWITCH2CE Project by UNIDO, which supports the transition to a circular economy in the garment sector. We are also involved in the CREATE project, led by Aalborg University, which is aimed at fostering innovation and sustainable practices in textile production.

BGMEA’s Sustainability Strategic Vision 2030 is our roadmap for aligning the RMG sector with the Sustainable Development Goals (SDGs) and the national priorities of Bangladesh. This strategic vision emphasizes the importance of sustainable growth and reinforces our commitment to environmental stewardship, social responsibility, and economic resilience.

Bangladesh’s leadership in green manufacturing is evident in our achievement of having the highest number of LEED Certified factories in the world, with 230 certifications, including 92 Platinum and 124 Gold-rated factories. This accomplishment underscores our progress in enhancing green manufacturing capabilities, which not only contributes to environmental sustainability but also strengthens the global competitiveness of our textile and garment industry.

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The meeting focused on exploring potential areas of trade and investment and enhancing collaboration between Bangladesh and Argentina.

During the discussions, they emphasized the immense potential for boosting bilateral trade and investment through strengthened partnerships.

They highlighted the importance of increasing communication and fostering stronger ties between the business communities of both countries to unlock the full potential of trade opportunities.

Ambassador Marcelo Cesa and BGMEA Administrator Anwar Hossain underscored the need for organizing road shows and single-country fairs to facilitate direct communication between businessmen in Bangladesh and Argentina.

Such initiatives would provide an excellent platform for showcasing the strengths and capabilities of both countries, allowing businesses to explore new trade and investment opportunities.

Anwar Hossain briefed Ambassador Cesa on Bangladesh’s strong focus on product diversification in the ready-made garment sector, particularly expanding into high-value apparel using man-made fibers

He sought the Ambassador’s support in increasing garment exports to Argentina.

Administrator Anwar Hossain informed the Ambassador of Bangladesh’s interest in importing cotton from Argentina, highlighting the mutual benefits of such a partnership. This collaboration could create a win-win scenario for both counties, contributing to the growth of their respective economies.

The BGMEA Administrator also requested the Ambassador’s assistance in simplifying the visa process for Bangladeshi businesspeople seeking to visit Argentina, to foster stronger business exchanges.

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Rafee, who is also the vice-president of Bangladesh Apparel Youth Leaders Association (Bayla), in a statement to members of Bayla Yesterday said, “They [workers] tried to murder me. I couldn’t even speak for two minutes before the mob started attacking from all around.”

“Later I was dragged and slammed under the flyover and was assaulted by big bricks, metal rods and tree branches. As soon as I got hit on the back of my head I fainted for a while.

On Thursday workers of Mahmud Jeans Limited in Gazipur’s Kaliakoir, they staged a demonstration blocking the Dhaka-Tangail highway all day, demanding their due wages.

In a press statement today, BGMEA expressed deep concern over the incident.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has strongly condemned the attack on Deputy Managing Director of Mahmud Jeans Ltd Rafee Mahmud in Gazipur’s Kaliakoir yesterday (28 November).

In a press statement today (29 November), BGMEA expressed deep concern over the incident.

Rafee, also the son of the factory owner, was discussing the issue of pending wages with the workers yesterday evening. Some people attacked and injured him, confining him to the factory.

Later, the army and police rescued him from the factory, BGMEA said.

“Such an attack during ongoing negotiations is unacceptable.”

BGMEA believes that such audacity is a blow to the entire industry. It is unacceptable to attack an industry that is the driving force of the country’s economy, directly employs 40 lakh workers, and indirectly supports the livelihoods of 5 crore people.

This incident will send the wrong message about the country’s industry to the outside world, the statement read.

Besides BKMEA president Mohammad Hatem said a daily news paper,

BKMEA calls on all law enforcement agencies to actively cooperate in maintaining good law and order in the garment industry. Every garment factory is drawing the attention of the relevant quarters of the government to provide security.

He want to safty and security of RMG oweners and Industry.

He also demanded those who are involved in instigating and destabilising the industry be brought to justice.

We protest and strongly condemn the heinous attack on Rafi Mahmud, DMD of Mahmud Denim, a reputed apparel company, and wish Mr. Mahmud a speedy recovery. We demand quick arrest and strict punishment of the attackers said Al Shahriar Ahmed, President of BGAPMEA and GS of BAYLA

Association leaders stressed strengthening safety and security measures to keep their factory units operational amid ongoing labour unrest.

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Abdullah Hil Rakib: The issue of factory owners being unable to pay their workers is a multifaceted problem that cannot be explained in a single sentence. Several interconnected factors are contributing to this crisis, many of which are rooted in the evolving political and economic landscape.

First, there has been a noticeable distinction between the roles of the current government and an interim government, particularly in how they manage law enforcement post-protests. This shift has significantly affected the industrial sector. In the past, when workers protested, disputes were often resolved through mediation facilitated by law enforcement, particularly the industrial police. However, a leadership vacuum and diminished law enforcement support have created a gap in resolving industrial conflicts effectively.

While the situation has slightly improved since August and September, the sector is far from achieving stability. Coordination issues within law enforcement agencies persist, further exacerbated by structural changes introduced in November 2023. These factors have contributed to the closure of approximately 106 factories, raising critical questions about the sustainability of the industry.

Financially, the sector is under immense pressure. Over the past five years, production costs have surged, with the implementation of the 2023 wage structure alone leading to a 56% increase in wage expenses. For context, in my six factories employing 23,000 workers, the net payroll expense rose by 1.09 billion BDT. While larger industries may manage these costs, small and medium enterprises (SMEs) face significant difficulties in sustaining such financial burdens.

Compounding this is the sharp rise in power costs, which have increased by 286%, alongside persistent power supply inconsistencies. Key facilities, such as dyeing and washing plants, often experience power outages during the day, leading to heightened operational costs. This combination of escalating expenses and erratic power supply has critically disrupted cash flow for many businesses.

The liquidity crisis within banks adds yet another layer to the problem. With delayed transactions and restricted access to capital, factory owners are struggling to meet financial obligations, including payroll. When wage costs increase by 56%, power costs by 286%, and banking liquidity dries up, the challenges become insurmountable for many, threatening the very survival of the industry.

This complex interplay of rising costs, disrupted cash flow, inadequate governance, and external economic pressures has created a perfect storm, leaving many factory owners unable to sustain their operations, let alone pay their workers.

Source: Channel i Talk Show

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The delegation included Kelly M. Fay Rodríguez, Special Representative for International Labor Affairs; Thea Lee, Deputy Undersecretary for International Affairs, and Anne M. Zollner, Chief of the Office of Trade and Labor Affairs.

The delegation also included Christy Hoffman, General Secretary of UNI Global Union; Scott Nova, Executive Director of the Worker Rights Consortium, and senior representatives from major global fashion brands including GAP Inc, PVH Corp, and VF Corporation.

The BGMEA side was headed by Administrator Anwar Hossain, along with members of BGMEA’s Support Committee and BGMEA leaders.

The discussions focused on key issues related to the ready-made garment (RMG) sector, with a special emphasis on workers’ rights, workplace safety, labor law reforms, and market access.

During the meeting, BGMEA Administrator Anwar Hossain apprised the delegation of the substantial progress made by the RMG industry in recent years, particularly in the areas of workplace safety, labor rights, and reforms to labor laws.

The BGMEA Support Committee members highlighted the ongoing efforts of the government of Bangladesh and the garment industry to further enhance workers’ rights and welfare.

Appreciating the progress made by Bangladesh, particularly in improving labor conditions, the US delegation emphasized areas where further improvements can be made, including the amendment of the Bangladesh Labor Act (BLA).

The meeting underscored the importance of continued collaboration between Bangladesh, the U.S. government, and industry stakeholders to build a more sustainable, fair, and resilient RMG sector.

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Experts attribute this trend to factors like factory unrest, the pursuit of better wages, and a desire for more independence in their work. This issue was highlighted during the presentation of a report titled Bunon 2030: Key Interventions, Insights, & Way Forward for Bangladesh’s RMG Sector at a discussion event in Dhaka. The session, organized by LightCastle Partners and Policy Exchange Bangladesh, shed light on the implications of the workforce decline and offered recommendations to reverse the trend.

Speakers emphasized the importance of creating a safer, women-friendly work environment, ensuring fair and timely wages, and providing better health services. These measures are deemed essential for retaining skilled female workers and maintaining a motivated workforce, which is crucial for the sustainability of the RMG sector.

The event also addressed broader challenges such as decarbonization, automation, and Bangladesh’s impending graduation from Least Developed Country (LDC) status. Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), warned that the loss of trade benefits like the General System of Preferences (GSP) in 2026 could lead to increased costs and reduced competitiveness.

Bangladesh’s RMG sector, which generated $36 billion in exports in the 2023-2024 fiscal year and contributed 10.35% to the GDP, employs over 4 million workers. However, the lack of skilled labor and non-compliance among some manufacturers could hinder growth. The Bunon 2030 report urged the industry to align with global standards, improve resource efficiency, and prepare for the transition to sustainable practices to ensure long-term growth and resilience.

Stakeholders at the event, including government officials, BGMEA leaders, and industry experts, called for immediate action to address these challenges. They highlighted the need for collaborative efforts to secure the sector’s competitiveness and its continued role as a cornerstone of Bangladesh’s economy.

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The BGMEA’s election-centric alliance, Forum, has officially announced its panel leader for the upcoming elections.

Mahmud Hasan Khan Babu, managing director of Rising Fashions, will lead the Forum in the contest for leadership of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). 

The Forum introduced its panel leader to industry stakeholders at an event in Dhaka today (20 November).

Babu brings significant experience to the role, having previously served as vice president and director of BGMEA, as well as also served as director positions in the Bangladesh Textile Mills Association (BTMA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Former BGMEA presidents Anisur Rahman Sinha, Anwar-ul-Alam Chowdhury Parvez, and Rubana Huq, along with Forum President Abdul Salam and Rashid Ahmed Hossaini, were present at the event. 

Forum leaders mentioned that Babu’s leadership will help to address the pressing challenges faced by the garment sector.

Industry stakeholders echoed the sentiment, emphasizing the need for strong, decisive leadership to navigate global and local challenges. 

“The apparel industry is at a crossroads, requiring bold and strategic decisions,” said one entrepreneur. “Crisis management cannot be achieved through passive leadership alone; it demands an understanding of the sector’s core needs and innovative approaches to problem-solving.” 

Mahmud Hasan called for timely elections and a transparent and inclusive voter list, ensuring that only legitimate members of the association participate in the electoral process. He urged the administrator to oversee a fair and impartial election process. 

The BGMEA Board of Directors was dissolved by the Ministry of Commerce on 20 October, with an administrator appointed to facilitate the transition to a newly elected board within 120 days. 

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C&A is a leading global fashion retailer that operates approximately 1,300 stores in Europe. It is one of the major foreign clothing buyers in Bangladesh and has been sourcing from the country for many years.

Shantanu Singh, Regional Sourcing Manager, C&A, also attended the meeting.

The discussions centred around the current state of Bangladesh’s ready-made garment (RMG) industry, global market trends, and prospects for business expansion. They also explored possible collaborations to enhance the industry’s competitiveness in the worldwide market.

During the meeting, BGMEA Administrator Anwar Hossain provided an overview of the transformative changes that have taken place within the country’s apparel sector.

He highlighted Bangladesh’s growing leadership role in global decarbonization efforts and commitment to ethical sourcing practices.

Bangladesh boasts the highest number of green garment factories in the world, with 230 factories certified LEED by the US Green Building Council (USGBC). More than half of the world’s 100 top-ranked LEED factories are located in Bangladesh.

Pointing to Bangladesh’s strategic shift toward high-value fashion items, including those made from synthetic fibers, Anwar Hossain urged C&A to increase its sourcing of garments, particularly high-value products from the country.

He also apprised the C&A delegation of the growing investments and developments in Bangladesh’s backward linkage industry, which supports the competitiveness of the RMG sector.

Md. Faizur Rahman
Secretary-General

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