Spain Drives Bangladesh Garment Export Growth to the EU as Germany Stalls and France Falls

Bangladesh's ready-made garment exports to the European Union rose in the first four months of fiscal year 2026-27. Almost all of that growth, however, came from the Spanish market; exports to Germany were almost flat and exports to France fell.

According to Export Promotion Bureau (EPB) data compiled by Bangladesh Apparel Voice, garment exports from Bangladesh to the EU from July to October this year rose 2.79 percent from the same period a year earlier to 6.43 billion dollars. In the same period last year, exports were 6.26 billion dollars.

About 98 percent of Bangladesh's total export growth to the bloc came from Spain. Exports to that country rose 13.36 percent, from 1.28 billion dollars to 1.45 billion dollars. In other words, exports to Spain increased by 170.56 million dollars, while total export growth to the EU was 174.51 million dollars.

As a result of this growth, Spain has overtaken Germany to become Bangladesh's largest garment export destination in the EU. The country's share of the bloc's total is now 22.51 percent.

By contrast, exports to Germany, once in the top position, rose by only 0.01 percent. Exports to that country stood at 1.44 billion dollars, with a market share of 22.37 percent.

Among other major markets, exports to the Netherlands rose 8.68 percent to 784.57 million dollars and to Poland by 2.85 percent to 545.91 million dollars. In contrast, exports to France fell 7.87 percent to 611.10 million dollars. Combined exports to other EU markets also fell 1.34 percent to 1.60 billion dollars. About 75 percent of Bangladesh's total garment exports to the bloc went to its top five destinations.

In October alone, garment exports to the EU rose 1.10 percent from the same month a year earlier to 1.53 billion dollars. That month, exports to Germany rose 0.59 percent to 315.72 million dollars. With growth of 11.95 percent, exports to Spain stood at 299.20 million dollars. Exports to France, however, fell 15.22 percent to 161.69 million dollars.

Sector insiders say that ahead of Bangladesh's graduation from the least developed country (LDC) list, European buyers are looking for alternative sourcing countries. This has created a new challenge for Bangladesh's competitiveness in the European market.

They say European buyers are especially increasing their sourcing capability from India. They believe India will be able to retain duty-free or preferential market access. Bangladesh, on the other hand, may face higher tariffs after LDC graduation. They believe this uncertainty could affect future purchase orders.

Sector insiders also cited limited product diversity as one of the main obstacles to expanding Bangladesh's exports in the European market. The country's garment industry is still largely dependent on cotton-based products. Competitors such as China and Vietnam, however, have strong capability in man-made fibre products, allowing them to meet buyers' varied demands.

In their view, Bangladesh needs more investment in the use of man-made fibres and in product diversification to raise its competitiveness. Keeping its position in the European market also requires securing competitive trade deals and preparing to meet the EU's strict due diligence and supply-chain transparency requirements. They also noted that high interest rates on loans, limited availability of capital and rising energy prices are further weakening producers' competitiveness.

The latest figures show that while export growth in Spain and the Netherlands offers some relief, stagnation in Germany and declines in France and other markets mean the garment sector's recovery remains fragile. The figures and sector insiders point to the need for better trade deals, product diversification and more effective steps to meet the EU's changing requirements in order to sustain growth in the European market.