Bangladesh and Türkiye are entering a new phase of economic relations. The two countries recently confirmed deeper cooperation and initiated exploratory talks for a Free Trade Agreement (FTA) or Preferential Trade Agreement (PTA). This move has immediate implications for both nations' textile and apparel industries. Bangladesh is the world's second-largest garment exporter, while Türkiye serves as Europe's 'near-shore' textile supply hub. An institutional trade channel between them would reshape the flow of raw materials and finished goods from South Asia to the Mediterranean.
Industry Logic: Complementarity Over Competition
From a fundamental perspective, the textile and apparel supply chains of Bangladesh and Türkiye are highly complementary. Bangladesh possesses the world's densest concentration of garment assembly capacity with a pronounced labor cost advantage, yet it relies heavily on imported upstream synthetic fibers and high-end fabrics, primarily from China and India. Türkiye, conversely, is one of Europe's largest producers of synthetic fibers, with ample capacity in polyester, nylon, and other man-made fibers, along with mature dyeing and finishing technologies. If an FTA is realized, Bangladeshi mills can source synthetic yarns and grey fabrics directly from Türkiye, shortening supply chains and bypassing the longer lead times typical of East Asian imports.
For Türkiye, Bangladesh's garment manufacturing capacity can serve as a low-cost fulcrum in a 'near-shore plus off-shore' dual strategy. Turkish garment factories have faced rising labor costs and pressure from Southeast Asian competitors. By funneling some orders to Bangladeshi factories under an FTA and re-exporting under Turkish origin to the EU, they can maintain rapid-response advantages in the European market. This is a practical extension of the 'Türkiye+1' supply chain model increasingly favored by European buyers.
Trade Data Supports Trend Judgment
Public trade data shows that bilateral textile and apparel flows already have a meaningful base. In 2023, Bangladesh exported approximately USD 250 million in garments to Türkiye, mainly knitwear and T-shirts. Türkiye's exports of textile raw materials to Bangladesh reached nearly USD 400 million, dominated by synthetic filament, staple fibers, and yarns. Bilateral trade volume has grown at an average annual rate of about 12% over the past five years, though it still represents a small fraction of each country's total trade. If an FTA is signed, tariff reductions will directly stimulate volume growth in these categories, with bilateral trade potentially doubling within three years.
More noteworthy is the supply chain transmission effect. Turkish synthetic fibers entering Bangladesh will lower production costs for local mills, thereby enhancing the price competitiveness of Bangladeshi garments among global buyers. Additionally, Turkish textile machinery manufacturers stand to expand their market share in Bangladesh through the FTA. Bangladesh is currently in a major wave of upgrading its weaving and dyeing equipment, with strong demand for imported machinery.
Geopolitical and Trade Policy Variables
This cooperation is not an isolated event but part of the broader restructuring of global textile trade. The EU grants Bangladesh duty-free, quota-free access under the Everything But Arms (EBA) scheme, but Bangladesh is scheduled to graduate from LDC status around 2026, at which point EBA preferences will be phased out. Establishing an FTA with Türkiye is seen by Dhaka as a key hedge against the graduation shock, using Türkiye as a 'near-shore gateway' to maintain preferential access to the European market.
Türkiye, meanwhile, faces ongoing uncertainty in its own customs union with the EU. The EU is pushing forward with the Carbon Border Adjustment Mechanism (CBAM), currently covering steel and aluminum, with textile products not yet included but under long-term pressure. Partnering with Bangladesh allows Türkiye to solidify its hub role in the global textile supply chain while diversifying single-market risk.