Bangladesh Government Picks 18 Countries For Export Diversification Strategy: Commerce Secretary

Dhaka, September 29, 2026 — The Bangladesh government is preparing separate export strategies for 18 key trading destinations as part of its export diversification drive. The destinations include the United States, China, the United Kingdom, India, France, Russia, Malaysia, South Korea, Switzerland, Iran, Brazil, Türkiye, Japan, Canada, Belgium, Australia, New Zealand and Fiji.

🌏 Commerce Secretary Md Ataur Rahman Khan disclosed the plan at a workshop on export diversification at the commerce ministry's conference room in the Secretariat in Dhaka yesterday, according to a ministry press statement.

📊 The 18 Target Countries

The selected destinations represent a strategic mix of:

• 🇺🇸 United States — Bangladesh's largest single export destination
• 🇨🇳 China — Bangladesh's largest import source and growing export market
• 🇬🇧 United Kingdom — traditional RMG export destination
• 🇮🇳 India — neighboring market with growing demand
• 🇫🇷 France — key EU market
• 🇷🇺 Russia — market affected by ongoing war
• 🇲🇾 Malaysia — ASEAN gateway, FTA target
• 🇰🇷 South Korea — growing trade partner
• 🇨🇭 Switzerland — European non-EU market
• 🇮🇷 Iran — market affected by conflict
• 🇧🇷 Brazil — Latin American growth market
• 🇹🇷 Türkiye — Islamic world gateway
• 🇯🇵 Japan — EPA partner
• 🇨🇦 Canada — growing North American market
• 🇧🇪 Belgium — EU institutional hub
• 🇦🇺 Australia — growing Pacific market
• 🇳🇿 New Zealand — Pacific market
• 🇫🇯 Fiji — Pacific island market

💬 Commerce Secretary's Vision

The strategies aim to increase export earnings and reduce Bangladesh's reliance on garments by diversifying both products and markets, the ministry said.

💬 “Equal emphasis is being given to both product and market diversification to make exports stronger and more sustainable,” said Secretary Ataur.

💼 Current Export Concentration Challenge

Bangladesh's export sector is heavily concentrated:

• 👕 RMG share of total exports: approximately 84 per cent
• 👕 EU + US + UK + Canada share: approximately 80 per cent of total exports
• 👕 Product concentration: RMG dominates, with limited diversification into pharmaceuticals, leather, jute, IT, and agricultural products

This concentration creates significant vulnerability — any disruption to RMG demand in traditional markets has a disproportionate impact on Bangladesh's export economy.

🌏 Market-Specific Challenges

Bangladesh already exports goods to most of the selected markets, but the volumes remain low. Key challenges include:

• ⚠ Russia and Iran — both currently engaged in war, with exports having fallen recently
• ⚠ China — trade gap heavily in China's favour ($18.19bn imports vs limited exports)
• ⚠ India — non-tariff barriers and anti-dumping duties on jute products
• ⚠ Japan — EPA provides opportunity but Japanese market quality standards are stringent
• ⚠ Malaysia — FTA under negotiation, potential for preferential access

🏛 Strategic Context: LDC Graduation

The export diversification drive comes at a critical moment as Bangladesh prepares for LDC graduation in 2026:

• 📋 Bangladesh will lose EU Everything But Arms (EBA) preferential access
• 📋 US GSP preferences (limited, but relevant for some products) will be affected
• 📋 Japan GSP preferences will end — though the EPA provides alternative access
• 📋 Tariff erosion will make Bangladeshi exports less competitive in traditional markets

Diversifying into new markets is therefore not just an opportunity — it is a strategic necessity for maintaining export growth post-LDC graduation.

💼 Product Diversification Imperative

Equal emphasis on product diversification means Bangladesh aims to expand exports beyond RMG:

• 💊 Pharmaceuticals — already exporting to 150+ countries, with growth potential
• 👞 Leather and footwear — government roadmap being prepared
• 🧵 Jute and jute products — eco-friendly positioning for global markets
• 🌾 Agricultural products — including processed foods and frozen foods
• 💻 IT and IT-enabled services — growing freelance and outsourcing sector
• 🏢 Light engineering — including bicycle, shipbuilding, and consumer electronics

📜 Looking Ahead

The commerce ministry said it is analysing the market potential, existing barriers, positions of the competitors, and possible strategies for each of the 18 destinations. This analysis will form the basis of country-specific export strategies.

For Bangladesh's export economy, the 18-country diversification push represents the most comprehensive market diversification initiative to date — one that could fundamentally reshape the country's export landscape if implemented effectively. The coming months will reveal the specific strategies for each market and whether they can translate into meaningful export growth beyond the RMG sector.