The Future of Bangladesh's Garment Industry: sustainability, growth and the role of the EU.

The ready-made garment (RMG) sector of Bangladesh has established itself as the second-largest global apparel exporter by offering inexpensive, trendy clothing to high-end markets, especially the European Union. However, the industry is at a point of significant change as Bangladesh gets set to graduate from being a Least Developed Country, lose Everything But Arms preferences, and face ambitious EU sustainability regulations like the Corporate Sustainability Due Diligence Directive and the Digital Product Passport. These interrelated trade and regulatory changes are redefining the terms of access to the EU market for Bangladeshi producers, which is a situation that is both a challenge to the longstanding price-based competitiveness model and an encouragement to the industry to change to a more structural, capability-driven form of competitiveness characterized by compliance, digital traceability, and sustainable production.