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The BGMEA said Bangladesh’s role in the global apparel value chain complements the US economy.
It also said the government provides policy support, including cash incentives, to offset structural disadvantages such as inadequate infrastructure, longer lead times and limited backward linkage industries.
These factors add an additional seven to ten days of transit time and increase logistics costs, conditions that are not faced by competitors such as China, India and Vietnam.
Moreover, a lack of integrated upstream industries leaves Bangladesh heavily dependent on imported yarn, fabric and chemicals, further affecting cost competitiveness.
Despite these constraints, the BGMEA said the sector has grown by focusing on large-scale production at competitive prices. However, it added that the government is gradually phasing out incentives in view of Bangladesh’s upcoming graduation from least developed country (LDC) status.
On allegations of forced labour, the BGMEA said Bangladesh maintains a firm and unequivocal position that there is no forced labour in its export-oriented garment sector.
It said the industry operates under a strong legal and institutional framework that ensures compliance with national labour laws and internationally recognised standards.
Citing the official United States Customs and Border Protection (CBP) dashboard, updated on January 29, 2026, the BGMEA said that 55 Withhold Release Orders (WROs) are currently active across all industries.
A WRO is a command by U.S. Customs to stop and hold imported goods at the border if they are suspected of being made with forced labour.
While the textile, apparel, and footwear sector accounts for 6 of these orders, a thorough review of the database confirms that there is no instance of any WRO issued against Bangladesh. This reflects the adherence of Bangladesh’s supply chain to international labour standards, said the BGMEA.
In a letter to the USTR recently, the AAFA has urged it not to impose new tariffs on countries under investigation.