Bangladesh and Türkiye have recently agreed to strengthen economic cooperation and explore a Free Trade Agreement (FTA) or Preferential Trade Agreement (PTA). This development carries profound implications for the textile and apparel sectors of both nations. Bangladesh stands to gain preferential access to the Turkish market, reducing export costs for its garments, while Türkiye could secure a stable supply of mid-to-low-end fabrics from Bangladesh. Industry analysts suggest this could reshape supply chain dynamics across South Asia and the Middle East, influencing regional sourcing strategies.
Background
Both governments have confirmed the initiation of a feasibility study for an FTA/PTA. Textiles and apparel are pillar industries for each: Bangladesh is the world's second-largest garment exporter, while Türkiye serves as a key textile supply hub for Europe and the Middle East. Bilateral trade is currently dominated by textiles, but tariff barriers persist. Türkiye imposes an average 10%-15% import duty on Bangladeshi garments, and Bangladesh levies similar tariffs on Turkish fabrics. A successful agreement would directly enhance the price competitiveness of both sides' products.
Geographically, Türkiye bridges Europe and Asia, while Bangladesh sits in South Asia. No direct land route connects them, making sea freight the primary transport channel. However, high-level exchanges have intensified in recent years, signaling clear intent for deeper economic ties. This FTA/PTA initiative is not an isolated move but rather the intersection of Türkiye's 'look east' strategy and Bangladesh's drive for export diversification.
Industry Impact
For Bangladesh, Türkiye represents an underappreciated market. In 2023, Türkiye imported over $4 billion worth of apparel, yet Bangladesh accounted for less than 5% of that. With tariff reductions, Bangladeshi garments could see an 8%-12% price drop in the Turkish market, significantly boosting their competitiveness against local products and those from neighboring countries like Egypt and Jordan. Sourcing professionals should monitor the capacity of Bangladeshi factories to adapt to Turkish-specific styles, such as knitwear and sportswear.
For Türkiye, Bangladesh offers an ideal source for mid-to-low-end fabrics. Türkiye's textile upstream—spinning and weaving—is strong, but mid-to-low-end fabric costs remain high. Bangladesh has vast capacity in polyester and blended fabrics at very competitive prices. A PTA would allow Turkish brands and fabric importers to lower raw material costs, enhancing the price competitiveness of their final products in Europe.
The deeper implication is supply chain reconfiguration. Currently, global buyers source garments from Bangladesh and high-end fabrics/home textiles from Türkiye. An FTA could enable a cross-border model—Bangladeshi garments combined with Turkish fabrics—disrupting the existing single-country sourcing pattern. The two nations might also jointly develop third-party markets like North Africa and Central Asia, forming a new industrial alliance.