Bangladesh’s readymade garment (RMG) exports to Canada have remained largely stagnant in recent years, while Vietnam has emerged as the second-largest apparel supplier, surpassing Bangladesh.

Vietnam overtook Bangladesh in 2022, largely due to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which allows duty-free trade in goods between the two countries.

Economists and exporters noted that Canada, which has potential for higher local shipments, could face stiffer competition, particularly following the US’s new reciprocal tariffs regime. India, Vietnam, and Cambodia are expected to further intensify their focus on the Canadian market.

Bangladeshi exports to Canada may also face future challenges. Currently enjoying duty benefits, Bangladeshi garments are likely to incur 17–19 per cent duties once the country graduates from least developed country (LDC) status in November 2026, experts warned.

Data from the International Trade Centre (ITC) trade map indicates Bangladesh shipped apparel worth $1.41 billion to Canada in 2024, slightly down from $1.43 billion in 2023.

In 2022, exports had reached US$1.74 billion, the year Vietnam overtook Bangladesh with US$1.75 billion in earnings.

China remains the top exporter to Canada, earning $3.18 billion in 2024, slightly down from $3.19 billion in 2023 and $3.77 billion in 2022.

Vietnam shipped $1.61 billion worth of apparel to Canada in 2024, up from $1.53 billion in 2023.

Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), attributed the stagnant growth to the devaluation of the Canadian dollar against the US dollar, which has made imports more expensive and reduced demand.

‘Though Canada is not a large market, Bangladesh has potential to expand its share,’ he said, urging the government to provide policy support and alternative incentives, such as lower bank interest rates and funds for technology upgrades and machinery purchases, to mitigate post-graduation challenges.

SM Khaled, managing director of Snowtex Apparels Ltd, cited factors such as COVID-19, the Russia-Ukraine war, and the latest US tariffs as reasons for the slow growth in exports.

‘Some shipments previously routed through Canada to the US now face difficulties due to tariffs, and Canadian demand is not increasing,’ he explained.

BGMEA director Shah Rayeed Chowdhury highlighted that Bangladesh’s reputation as a producer of basic, low-cost garments hampers its entry into Canada’s premium segment.

‘Although Bangladesh produces high-value items, buyers often source them from Cambodia,’ he said, stressing the need to build buyer confidence through exchange missions, trade fairs, and dialogues.

‘Despite current tariff issues, Canadian buyers are still placing orders here,’ Rayeed said, describing Canada as a stable market.

M A Razzaque, chairman of Research and Policy Integration for Development (RAPID), noted that China’s exports to Canada are declining, and Bangladesh has dropped to the third-largest exporter after Vietnam’s CPTPP advantage.

‘Bangladesh could capture orders shifting from China, but this will be challenging, especially with the new US tariff regimes,’ he said.

Razzaque said that while Bangladesh may enjoy a three-year transition period with duty benefits until 2029 post-graduation, the country will face significant competition from India, which is expected to increase exports to Canada, as well as to the EU and UK, following the US’s high tariff impositions.

‘Bangladesh should closely monitor developments in the EU, UK, and Canadian markets,’ he advised.