European and Mercosur textile industry groups have launched a new platform to strengthen trade, improve market access and encourage investment. The initiative comes as textile and apparel trade between the two regions approaches €700 million.

The Textile and Apparel Dialogue (TAD) was launched by the European Apparel and Textile Confederation (EURATEX), the Brazilian Textile and Apparel Industry Association (ABIT) and the Argentine Textile Industry Federation (FITA). It aims to support the implementation of the EU–Mercosur Free Trade Agreement and strengthen cooperation across the textile and apparel supply chain.

Trade between the two regions reached nearly €694 million in 2025. European exports to Mercosur totaled €495 million, while imports from the region reached €199 million. European exports accounted for about 71% of their combined trade value.

The dialogue will focus on market access, investment, rules of origin and customs procedures. It will also address regulatory barriers, sustainability, circularity, traceability and fair competition.

These areas are important for companies seeking to expand international trade. Clearer customs procedures and rules of origin can help businesses understand trade requirements and use available tariff benefits. Cooperation on sustainability and traceability can also help companies respond to changing market requirements.

Mario Jorge Machado, president of EURATEX, said the initiative aims to turn trade opportunities into stronger business partnerships, investment and more competitive supply chains.

The dialogue will hold two meetings each year, alternating between virtual and in-person sessions. EURATEX, ABIT and FITA will take turns leading the platform, with the chairmanship changing annually.

The initiative gives textile industry representatives a formal platform to discuss trade challenges and find practical solutions. Its progress could help deepen commercial ties between Europe and South America.

Key insights

• Bangladesh's EU apparel exports fell 11.67% to €11.93 billion in January–August 2026.
• China's exports grew 2.38% to €19.71 billion, while Vietnam's increased 4.46%.
• Bangladesh's export volume declined 4.58%, but its average unit price fell 7.43%.
• China's average unit price was €19.82 per kg, compared with Bangladesh's €13.76.
• Total EU apparel imports fell 3.83%, highlighting Bangladesh's loss of ground against a wider market slowdown.

Bangladesh is losing ground to China in the European Union (EU) apparel market as export earnings and shipment volumes decline while Chinese suppliers expand. Lower unit prices, stronger supply chain integration, and China's strategic market shift toward Europe are increasing competitive pressure on Bangladeshi exporters.

According to Eurostat statistics released on October 18, 2026, Bangladesh exported €11.93 billion worth of apparel to the EU in January–August 2026, down 11.67% from €13.50 billion in the same period of 2025. In contrast, China’s exports rose 2.38% to €19.71 billion, while Vietnam’s increased 4.46% to €3.00 billion. The divergence is notable because total EU apparel imports contracted 3.83% to €60.29 billion during the period. Bangladesh's rate of decline was nearly three times the overall market contraction, demonstrating that European macro-demand trends alone cannot explain the performance gap.

EU apparel import summary (Jan–Aug 2026 vs. Jan–Aug 2025)

Sources: Eurostat statistics released on October 18, 2026, compiled by Bangladesh Apparel Voice (BAV) .

China's growth reflects advantages beyond raw price concessions. Industry analysts point to China's fully integrated domestic supply chain, raw material availability, higher automated productivity, shorter production lead times, and aggressive market penetration in Europe. China exported 994.46 million kg of apparel to the EU during January–August 2026 (+3.45%), while Bangladesh shipped 866.76 million kg (-4.58%).

US trade policy realignments have further catalyzed China's European expansion. Escalated US tariffs on Chinese goods forced Chinese manufacturers to diversify into the EU market using aggressive pricing and flexible delivery terms. Concurrently, US Department of Commerce Office of Textiles and Apparel (OTEXA) data reported on October 18, 2026, show that Bangladeshi apparel exports to the US also dropped 4.43% year-on-year to $5.39 billion, highlighting dual-market demand pressure.

Lower selling prices were the primary cause of Bangladesh’s revenue loss in the EU market. Between January and August 2026, Bangladesh lost €1.58 billion in export earnings, while its shipment volume dropped by a smaller 4.58%. This sharp revenue fall occurred because the average export price per kilogram dropped 7.43%—falling from €14.87 to €13.76 per kg. By contrast, China’s average unit price dipped by just 1.04% to €19.82 per kg, maintaining a 44.04% higher value per kilogram than Bangladesh.

Bangladesh suffered the largest loss among major apparel exporters to the EU during this period. Bangladesh’s export value fell 11.67%, outpacing other declining suppliers such as Sri Lanka (-11.12%), Turkey (-11.02%), India (-10.84%), Pakistan (-9.63%), and Cambodia (-4.46%). Conversely, Vietnam grew its export value by 4.46% to reach €3.00 billion, even though its shipment volume fell 5.13%. Vietnam achieved this growth by increasing its average unit price by 10.11%, showing the benefits of moving into higher-value garments.

Cumulative Eurostat data indicate that Bangladesh's rate of decline in the EU market is decelerating. The cumulative export value contraction narrowed from 16.43% in January–June 2026, to 13.65% in January–July, and to 11.67% in January–August. While this signals slowing loss momentum, long-term recovery depends on moving beyond basic price cuts, strengthening domestic fabric integration, optimizing factory energy efficiency, and expanding higher-value garment production.

Sabrina Mostafa, Senior Scientific Officer at IGCRT‑BCSIR and PhD researcher at RMIT University, highlights rice husk as a low‑cost alternative to conventional de‑coloring agents. This innovation could cut textile wastewater treatment costs while reducing environmental pollution.

Sabrina Mostafa presented the findings at a discussion at the Ministry of Science and Technology in the Secretariat.

In the research titled “Process Development for the Treatment of Wastewater from Textile Industries in Bangladesh,” Sabrina said that the use of locally available natural materials could make wastewater treatment more affordable and environmentally friendly.

She added that the technology could help textile industries comply with the government’s 2024 environmental guideline, which requires color units in wastewater to remain within 150.

Dr Narshad Haque, a scientific officer who joined the discussion virtually from Australia, said the low-cost method could help make Bangladesh’s textile sector greener and more competitive in the global market.

Speaking as the chief guest, Md Anwar Hossain, Secretary, Science and Technology stressed the need to treat harmful wastewater from the textile and garment sectors using modern technologies to ensure sustainable industrialization and environmental protection.

He called for joint research and process development by BCSIR and the sustainability departments of industry bodies, including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Also, forming an efficient research and development (R&D) team to ensure effective wastewater treatment before effluent is discharged from factories.

He urged the industry to reduce its reliance on chemical dyes and expensive imported materials by increasing the use of natural alternatives and building long-term partnerships with local chemical manufacturers that have their own R&D facilities.

Notably, he mentioned the importance of developing water-efficient dyeing technologies to reduce excessive groundwater and drinking water consumption.

BKMEA President Mohammad Hatem described the research initiative as timely, environmentally friendly and potentially transformative for the textile industry.

BKMEA was ready to support the ministry in moving the technology from the pilot stage to implementation, he added.

The discussion also explored field trials and initial application of the technology through the Australia-Bangladesh Innovation Centre, with technical and research support from Dr Narshad Haque. Plans were discussed to expand the technology across the textile industry through targeted expert support.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) officially launched its dedicated "ESG Platform" (ESG Dashboard) today at the Nurul Kader Auditorium in the BGMEA Complex.

The platform aims to play a vital role in meeting global Environmental, Social, and Governance (ESG) compliance requirements and adapting to evolving international market demands.

Dr. Rashed Al Mahmud Titumir, Honorable Adviser to the Ministry of Finance and Planning, attended the event as the chief guest, with BGMEA President Mahmud Hasan Khan presiding over the ceremony.

In his address, Dr. Titumir highlighted that the government provided $4.12 billion in energy sector subsidies over the past eight months. Addressing key economic priorities, he noted that the government is actively working on three major inherited challenges: a fragile economy, inflationary pressure, and unemployment among educated youth.

He stated that efforts are underway to generate employment by expanding production sector investments, increase domestic revenue without raising taxes, and enhance public spending in education and healthcare. He further noted a strong likelihood of Bangladesh successfully graduating from LDC status by 2029 and praised the leadership of BGMEA, BKMEA, and BTMA in supporting national economic vision and reforms.

Mahmud Hasan Khan emphasized that Bangladeshi garment factories must become increasingly compliant and data-driven to stay competitive.

"The ESG Platform will play a crucial role in evaluating and improving our member factories' environmental, social, and governance performance," he stated.

He noted that while 326 factories have reported data on the platform so far, reporting will soon be made mandatory for all members to ensure sector-wide protection, with BGMEA and BKMEA potentially collaborating on implementation.

Highlighting the journey of the platform since 2019, Sheikh Hossain Muhammad Mustafiz, BGMEA Director and lead initiator of the platform, delivered the welcome address.

He remarked that transforming baseline compliance into a competitive advantage is crucial, calling the launch a landmark achievement for industry transparency and sustainability.

Christian Brix Møller, Ambassador of Denmark to Bangladesh, attended as a special guest and reaffirmed full support for Bangladesh’s economic reform agenda. He underscored national unity, restructuring, and the implementation of the July Charter as vital steps toward building an effective parliamentary democracy and achieving a trillion-dollar economy.

Dr. M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, stressed that shifting from traditional compliance to holistically integrated sustainability is essential for long-term export success. Professor Munshi Sulaiman, Research Director at BIGD, BRAC University, emphasized the necessity of bringing all BGMEA member factories under the ESG platform's coverage.

The event was moderated by Sheikh Suchita Jahan Sneha, Lead Coordinator of the Responsible Business Hub and BGMEA Center of Excellence.

The initiative received financial support from the Embassy of Denmark in Bangladesh, with technical collaboration provided by the BRAC Institute of Governance and Development (BIGD) and Mapped in Bangladesh (MIB).

Other senior BGMEA leaders, including Inamul Haq Khan, Senior Vice President; Mijanur Rahman, Vice President (Finance) and Director Nafis Ud Doula, were also present at the ceremony.

Rising production costs, weakening apparel exports, and intensifying regional competition are testing Bangladesh’s denim industry.

Bangladesh has established itself as a premier global denim supplier, supported by large-scale manufacturing, domestic textile capabilities, and long-standing relationships with international buyers. However, the need for strategic adjustment is becoming urgent as broader garment exports lose momentum in major markets.

Data from Eurostat and the US Office of Textiles and Apparel (OTEXA) reveal that Bangladesh’s apparel exports to the European Union fell 18.89% year-on-year to €7.28 billion in January–May 2026.

Exports to the United States declined 8.08% to $3.25 billion during the same period. While these figures cover the entire garment sector rather than denim in isolation, they reflect systemic pressures across the export base.

Energy shortages and rising utility costs remain primary operational bottlenecks. Spinning, weaving, dyeing, finishing, and wet processing require reliable gas and electricity. Unscheduled disruptions lower machine utilization, delay shipments, and elevate per-unit costs.

Compounding this are higher local wages, elevated financing costs, and exchange-rate volatility affecting imported raw materials like cotton, specialized dyes, and spare parts.

Meanwhile, international buyers continue to demand shorter lead times, strict quality compliance, and competitive FOB pricing—leaving manufacturers to absorb rising costs at the expense of profit margins.

On the global stage, Bangladesh faces distinct competitive dynamics. China maintains unmatched supply-chain depth and automation capabilities; Pakistan benefits from an integrated domestic cotton supply; and Türkiye offers geographical proximity and rapid replenishment cycles to European retailers.

Vietnam’s performance is particularly instructive: while Bangladesh’s total apparel exports grew by just 0.89% in 2025, Vietnam recorded 10.53% growth according to WTO data.

Furthermore, recent market figures show Bangladesh’s EU garment exports declining more sharply than those of China, Cambodia, and Vietnam, while Cambodia 14.90% and Vietnam 1.46% posted positive growth in the US market. Competing on rock-bottom prices alone is no longer a viable long-term strategy.

Beyond baseline volume, Bangladesh can defend its denim positioning by expanding into value-added categories—such as stretch denim, lightweight summer weight fabrics, performance denim, and specialized functional finishes.

Stronger co-creation models among yarn mills, garment factories, and brand buyers can accelerate sample turnarounds, lower development costs, and capture higher-margin market segments.

Navigating trade preferences is another critical consideration. As Md Mohiuddin Rubel, former BGMEA Director and CEO of Bangladesh Apparel Voice, has noted, high concentration in the EU market creates exposure as Bangladesh prepares for LDC graduation.

Crucially, while formal graduation triggers the transition process, the EU provides a three-year grace period during which duty-free Everything But Arms (EBA) access continues until late 2029.

Industry leaders must use this transition window to prepare for EU GSP+ eligibility. Navigating strict rules of origin and meeting 27 international conventions on labor and environmental governance to avoid facing standard MFN tariffs of 9–12% post-transition.

Operational productivity rather than pure capacity expansion must drive the sector’s next growth phase. In factories, improved line balancing, structured operator training, and automated cutting systems reduce fabric waste and raise hourly output.

At the mill level, energy audits, high-efficiency motors, heat recovery systems, and rooftop solar arrays offer concrete paths to lower grid dependence and operational expenses.

In wet processing, automated chemical dosing, water recycling, and low-liquor ratio washing directly reduce utility bills while fulfilling stringent buyer environmental standards.

To support this transition amid high local interest rates, manufacturers can look toward specialized green transformation funds and low-interest sustainability financing to de-risk technology investments.

Upgrading to modern looms, automated fabric inspection, and waterless finishing technologies like laser and ozone processing will build long-term resilience.

Bangladesh’s denim industry possesses a formidable production base. Securing its global leadership will depend on how swiftly mills and factories pivot from cost-absorption to efficiency, product innovation, domestic waste recycling, and proactive trade planning.

The Bangladesh Textile Mills Association (BTMA) has defended the withdrawal of traditional bond facilities for importing 10–30 count cotton yarn, arguing that the bank guarantee-based system can protect domestic spinning mills and government revenue without disrupting legitimate exports.

In a statement issued on October 17, 2026, the association said policymakers should consider the interests of both the primary textile sector and the export-oriented ready-made garment (RMG) industry, taking into account the primary textile sector’s $32 billion investment, production capacity and employment.

According to BTMA, the withdrawal of bond facilities does not ban yarn imports or introduce new customs duties. Instead, under an order issued by the National Board of Revenue (NBR) following an inter-ministerial committee decision, importers can bring in yarn against a bank guarantee equivalent to the applicable duties and taxes.

The association said bank guarantees are generally issued as non-funded banking exposures and therefore are unlikely to reduce importers’ working capital. It added that the arrangement aims to prevent misuse of facilities, safeguard government revenue and ensure fair competition between locally produced and imported yarn.

BTMA highlights domestic spinning investment

BTMA said strengthening the domestic spinning industry could help restore production and financial capacity, reopen closed and partially closed spinning and weaving mills, and generate additional employment while protecting existing jobs.

It also argued that improving the operational and financial position of these enterprises could support loan recovery by banks and financial institutions and help reduce non-performing loans.

The association maintained that the policy issue extends beyond the interests of individual industrial sectors, involving investment protection, financial sector stability and the broader national economy.

Bank guarantees to strengthen monitoring

Under the proposed import arrangement, BTMA said authorities would have an opportunity to verify whether imported yarn is used for authorised purposes and hold importers accountable.

If required documents, including proof of export, are not submitted within the stipulated timeframe, the bank guarantee could be encashed in accordance with applicable rules. The association said this mechanism could reduce the risk of imported yarn being diverted to the domestic market without authorisation.

It also proposed releasing guarantees only after verifying export completion and the repatriation of export proceeds, alongside digital monitoring and risk-based audits to prevent misuse while maintaining smooth export operations.

BTMA calls for data-based assessment of yarn prices

Addressing concerns over rising local yarn prices and possible RMG order diversion to competing countries such as India and Egypt, BTMA called for a comprehensive assessment based on reliable and comparable data.

The association said a fair comparison between local and imported yarn should consider specifications, quality, transportation costs, applicable duties and taxes, bank charges, financing costs and other expenses.

It added that international buyers consider several factors beyond yarn prices, including productivity, product quality, technology, factory capacity, supply reliability and timely delivery. Therefore, BTMA argued that a single policy decision should not be blamed for order diversion without verifiable evidence.

Association proposes long-term policy framework

BTMA urged the government to retain the bank guarantee-based import system for genuine exporters following the withdrawal of traditional bond facilities for 10–30 English Count (Ne) cotton yarn.

It also recommended reinstating a 30% local value-addition requirement for raw material imports under bank guarantees by non-bonded industries. In preparation for Bangladesh’s post-LDC graduation period, the association proposed progressively raising local value addition to 40–60%, subject to WTO provisions, Rules of Origin and relevant two-stage transformation requirements.

The association called on the prime minister and relevant authorities to review the proposals through constructive dialogue with industry stakeholders and establish a transparent, balanced and long-term policy framework.

BTMA said domestic spinning mills and the RMG industry are complementary, arguing that coordinated policies to strengthen both sectors would support Bangladesh’s industrialisation, employment generation and export growth.

The European Apparel and Textile Confederation (Euratex) has urged European Union (EU) member states to protect funding for cleaner textile production, recycling and innovation under the bloc’s next long-term budget.

The trade body wants the EU’s 2028–2034 Multiannual Financial Framework (MFF) to help textile manufacturers invest in decarbonization, circular infrastructure and digitalization. The funding would support the industry in meeting the EU’s growing sustainability requirements.

Euratex raised the issue as EU member states negotiate the next long-term budget. The organization stressed the need to ensure that textile businesses can access financial support as they adapt to new environmental and digital requirements. Cleaner production and recycling require investment in technology, infrastructure and industrial processes. Financial support could help manufacturers reduce emissions, improve resource efficiency and expand textile recycling.

The proposed budget period covers seven years, from 2028 to 2034. Decisions on funding priorities will influence how European industries finance their transition toward more sustainable production.

Euratex also wants policymakers to ensure that the transition does not leave established textile businesses behind. Supporting existing manufacturers alongside new technologies and circular business models will be important for maintaining the industry’s production base.

Japanese materials manufacturer Toray Industries has developed a polyester-nylon composite fiber containing at least 93% recycled material by weight. The company has also introduced ARTIROSA® CX, a fabric designed for premium apparel markets, with commercial launch planned for the Autumn/Winter 2027 season.

The recycled content figure applies to the raw fiber, not the finished fabric or garment. The final percentage will depend on the material composition.

Toray used its proprietary polymer design and composite spinning technologies to incorporate recycled materials into both the polyester and nylon components. The challenge is to increase recycled content while maintaining consistent quality and the performance required for premium textiles.

ARTIROSA® CX features a dense, fine texture and a crisp feel. It targets men's and women's outerwear, urban outdoor clothing and high-end casual wear. Depending on the fabric construction and finishing process, it can be designed to provide properties such as water resistance and wind resistance.

Toray said the water-repellent agents used for the fabric are not intentionally formulated with per- and polyfluoroalkyl substances (PFAS).

The company plans to verify the technology's suitability for mass production and explore further increases in recycled content. It will also develop additional fabric options using nylon blends, natural fibers and different finishing techniques.

Toray is targeting first-year sales of 200,000 meters for ARTIROSA® CX. The development aims to expand the use of recycled materials in premium textiles, where appearance, durability and functional performance are key requirements.

Key insights

• Non-knitted apparel exports: up 8.5% to €696.5 million
• Vietnam-bound exports: up 88.2% to €20.5 million
• Man-made staple fiber exports: down 26.4% to €112.8 million

Portugal’s textile and clothing exports rose 2.4% year over year to €3.78 billion in the first eight months of 2026. It was supported by growth in technical fabrics, non-knitted apparel and non-EU markets.

Data from the Portuguese National Statistics Institute (INE) showed that exports to markets outside the European Union increased 5% to €1.09 billion. Exports to EU countries grew 1.3% to €2.69 billion, accounting for around 71% of total exports.

Technical textiles and non-knitted apparel led product growth. Exports of coated, laminated and other treated fabrics rose 13.8% to €259.2 million, while non-knitted clothing exports increased 8.5% to €696.5 million. Knitted clothing remained the largest category, with exports of €1.46 billion, up 1.3%.

However, man-made staple fiber exports fell 26.4% to €112.8 million, while man-made filament exports declined 11.2% to €53.6 million. These drops offset some gains in other product categories.

Spain remained the largest export destination at €873.3 million, although sales slipped 0.1%. Exports to France rose 4.1% to €559.2 million, while shipments to the Netherlands increased 10.2% to €230.1 million. Exports to the United States grew 3.1% to €300.9 million.

Emerging markets recorded faster growth. Exports to Vietnam surged 88.2% to €20.5 million, while shipments to Mexico rose 71.7% to €43.4 million.

The figures show that technical fabrics and selected apparel categories are supporting Portugal’s export growth as demand varies across traditional markets. Expanding sales beyond Europe could provide additional growth opportunities, although the declines in man-made fibers and some major European markets remain challenges.

ZDHC is seeking industry feedback on chemical management to support textile circularity. The organization will hold a summit in Lisbon in November 2026 to discuss chemical safety, recycling barriers, and data sharing across textile supply chains. 

The initial focus will be post-industrial textile and leather waste. Manufacturers generally have better access to chemical data for production waste than for discarded consumer textiles. This makes post-industrial waste a more practical starting point for developing safer recycling systems. 

One key challenge is identifying chemicals in waste materials before recycling. Chemical residues from dyeing, finishing, and other processes can affect the safety and quality of recycled materials. Without reliable chemical data, recyclers may find it difficult to assess whether waste is suitable for reuse. 

ZDHC is also considering a circularity-specific chemical watch list. The proposal remains under discussion and aims to address chemical risks linked to textile recycling. 

Data sharing is another challenge. Suppliers may not have complete chemical information available, while commercial confidentiality can limit disclosure. Better access to reliable data could help recyclers identify suitable feedstock and reduce risks during processing. 

For Bangladesh’s textile industry, the issue has direct business relevance. Manufacturers that improve chemical inventory management and production data could be better prepared to supply recycled materials and meet buyers’ traceability requirements. 

However, chemical management alone cannot ensure circularity. Effective recycling also requires suitable waste collection, sorting technology, and processing capacity. The Lisbon discussions will help determine how the industry can address these connected challenges. 

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https://www.textiletoday.com.bd/why-zdhc-is-a-business-necessity-for-textile-apparel-exporters-in-bangladesh

https://www.textiletoday.com.bd/zdhc-reports-progress-in-cutting-toxicity-across-textile-wet-processing

https://www.textiletoday.com.bd/meeting-between-zdhc-bkmea-took-place-to-accelerate-sustainable-chemical-management-in-bangladesh

Key insights 

• Current minimum monthly wage: Tk 12,500 

• Wage increase in 2023: 56.25% 

• Next wage review milestone: November 2026 

• Estimated monthly cost in 2026 of goods and services worth Tk 8,000 in 2018: Tk 14,500–15,000 

The government has started the process of forming a new minimum wage board for the ready-made garment (RMG) industry. The move comes as workers demand higher wages to meet rising living costs. 

On October 15, the Ministry of Labor and Employment asked the Bangladesh Employers’ Federation (BEF) and the president of the Jatiyatabadi Sramik Dal to nominate representatives. Each side has been asked to propose three candidates. The government expects to form the board in October. 

Under Bangladesh labor law, the board will include a neutral member, an employers’ representative and a workers’ representative. 

The move comes amid wage protests in Uttara, Dhaka. Workers from several garment factories blocked the Dhaka–Mymensingh highway for three consecutive days. The protests disrupted traffic and increased pressure for action on wages and other demands. 

Current minimum wage stands at Tk 12,500 

The current minimum monthly wage for garment workers is Tk 12,500. In 2023, the government raised it from Tk 8,000, an increase of 56.25%. The wage structure was also reduced from seven grades to five. 

The government has amended labor law to reduce the wage review interval from five years to three years. The latest wage was announced in November 2023 and took effect in December. The three-year review milestone falls in November 2026. 

Workers’ organizations say the current wage does not reflect rising household expenses. At a seminar organized by the Garment Workers Trade Union Centre on October 14, speakers said goods and services that cost Tk 8,000 in 2018 would cost around Tk 14,500–15,000 in 2026. 

They cited higher costs for food, rent, health care, education, and transportation. They also said many workers work extra hours but still struggle to cover basic expenses. 

Fazle Shamim Ehsan, President, Bangladesh Employers’ Federation, said the federation had received the ministry’s letter. He said it would consult the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) before submitting its nominees the following week. 

Taslima Akhter, President, Garment Sramik Sanghati, called for genuine worker representation and a fair selection process for the neutral member. She said the board should consider living costs, food prices, inflation and productivity when setting new wages. 

The new board will review the minimum wage as the three-year review milestone approaches. Its decision will be important for workers’ purchasing power and the future stability of the garment industry. 

The US Cotton Trust Protocol has reported 20% lower greenhouse gas emissions and 75% lower soil loss from its U.S. Regen™ cotton pilot. The program also recorded 49% better water-use efficiency and 30% greater soil carbon sequestration, based on its stated comparison baselines.

The first measured results cover 59,094 harvested acres across 469 fields in seven major US cotton-growing states. Introduced in 2025, U.S. Regen™ adds regenerative farming requirements to the existing US Cotton Trust Protocol framework. The program is expanding for the 2026 cotton crop.

The findings highlight the potential of regenerative farming to improve cotton’s environmental performance at the agricultural stage of the textile supply chain. Lower emissions can support brands’ climate targets, while improved soil health and water-use efficiency can help address environmental pressures associated with cotton production.

Traceability connects farm data with textile sourcing

Beyond environmental performance, the program aims to help apparel brands access field-level data linked to the cotton they source. Its traceability system uses a unique Permanent Bale Identification number, authenticated by the US Department of Agriculture, to track cotton at the bale level.

The system can help brands connect agricultural production data with their sourcing records and support Scope 3 emissions reporting. Scope 3 covers indirect emissions across a company’s value chain, including emissions associated with purchased raw materials.

The program also allows brands to use approved on-product claims to identify U.S. Regen™ cotton content, subject to its claims framework. This creates a link between farming practices, supply chain traceability, and consumer-facing sustainability information.

For textile manufacturers and apparel brands, the findings also show why sustainable cotton sourcing requires more than selecting a fiber. Verified farm-level data, reliable traceability, and clear claims are important to demonstrate environmental progress throughout the supply chain.

As the textile industry prepares for the Digital Product Passport, much of the attention is going towards software platforms, QR codes, RFID, NFC and data integration.

But software is only the visible layer.

The more difficult work sits deeper in the supply chain.

A DPP can only be as reliable as the information feeding it. If material origin, recycled content, chemical data, supplier declarations, test reports and transaction records are incomplete or disconnected, no digital platform can create credibility afterwards.

This is where Bangladesh needs to focus.

A garment manufacturer may need to know where the cotton came from, how the yarn and fabric were processed, what chemicals were used, whether recycled content is involved and how the dyehouse performed.

Then come trims and packaging.

Labels, sewing thread, printing inks, polybags, cartons and other components also carry material and compliance information. Each one brings another supplier, another data source and another piece of evidence.

This is why DPP readiness is not a factory-level IT project. It is a supply-chain coordination exercise.

The industry will need to map suppliers, identify what information each tier can provide, standardise product and material data, connect certificates with actual lots and orders, and close gaps before a passport can become meaningful.

One practical example comes from Montrims Limited.

According to its CEO, Dr. Aminul Haque, the company required more than four months to prepare its systems and supply chain. As part of that exercise, it audited more than Tk 100 crore worth of raw material inventory and had existing materials verified through third-party laboratories.

That experience offers an important lesson for the wider industry.

Readiness is not achieved by installing software. It requires checking whether the underlying information is available, reliable and traceable.

For a vertically integrated textile and garment operation, the task can be even larger because the evidence chain may run through fibre, yarn, fabric, dyeing, chemicals, trims and packaging.

The industry must also stop treating certificates and declarations as documents that can be searched for later.

The stronger approach is to capture evidence during the transaction itself.

A material certificate should be linked to the correct purchase order. A test report should connect to the relevant production lot. Supplier declarations should remain accessible long after shipment.

Otherwise, a request for evidence months later can become a costly reconstruction exercise.

This is where the real preparation for DPP begins.

Bangladesh should certainly invest in digital traceability tools. But technology should come after supply-chain readiness, not before it.

The question is not only whether factories have a DPP platform.

The more important question is whether every tier of the supply chain can provide the data that makes that passport trustworthy.

The sustainability gap: Industry hype versus consumer reality

Across global apparel forums, seminars, and industry discussions, conversations are heavily dominated by sustainability, circularity, recycling, ESG compliance, human rights, and digital transformation. While these topics are vital for the evolution of the textile and Ready-Made Garment (RMG) industry, they frequently overlook the perspective of the final consumer. When an ordinary shopper evaluates a garment, their primary focus remains on visual appeal, fit, color, comfort, quality, and overall value for price. A conscious consumer may certainly care about sustainability, but most shoppers do not analyze recycled fiber percentages, carbon footprints, or complex supply chain metrics before purchasing a shirt.

This disconnect between industry dialogue and consumer reality creates a widening gap. As terms like recycled polyester, regenerated fiber, circular fashion, and recyclable blends proliferate, average consumers risk becoming overwhelmed and confused. Without clear, transparent definitions, shoppers struggle to discern which products are genuinely sustainable, leading to a potential erosion of trust in sustainability claims. Ultimately, recycling alone does not define sustainability. A successful product must combine good design, proper fit, comfort, durability, and a reasonable price with responsible production methods. If a garment fails on fit or comfort, a sustainability claim alone will not sustain its commercial success.

The double standard: Export compliance versus domestic realities

For major manufacturing hubs like Bangladesh, buyer requirements regarding factory compliance, worker welfare, chemical management, environmental performance, and traceability are growing increasingly stringent. Bangladeshi manufacturers make substantial investments to meet these export standards. However, a critical question arises regarding the domestic market, where similar standards are rarely applied to textiles and apparel consumed locally or imported from competing nations.

If sustainability is a shared global responsibility, the standard should apply consistently across both export and domestic ecosystems. Bangladeshi exporters bear additional financial burdens to meet strict compliance mandates, yet competing imported products enter local markets without facing equal scrutiny. Furthermore, sustainability discussions remain heavily buyer-driven—suppliers build systems because buyers demand them. To create lasting impact, domestic consumers and local markets must become part of the conversation, establishing common, fair standards for both imported and domestically produced apparel.

The AI paradox: Exponential supply meets conscious demand

At the same time, the global economy is undergoing a massive technological shift driven by artificial intelligence, automation, and robotics. These advanced production tools allow industries to manufacture goods faster, in higher volumes, and potentially at lower costs, dramatically expanding global output capacity. Yet, this surge in manufacturing capability collides directly with global Sustainable Development Goals (SDGs), which emphasize waste reduction, energy conservation, carbon reduction, and responsible consumption.

Consumer mindsets are also evolving in ways that challenge endless volume expansion. Just as consumers increasingly prioritize personal health through natural foods and home-grown produce, fashion buyers are beginning to favor quality over quantity. Shoppers may choose durable garments, buy according to actual needs, reuse existing clothing, or seek customized, made-to-measure pieces over rapid, high-volume fast fashion. If technology enables industry output to surge while consumers intentionally buy less, the global market faces a structural risk of overproduction, excess inventory, and severe margin compression.

Strategic imperatives for the future of RMG

To navigate this new reality, Bangladesh's textile and RMG industry must shift its mindset from volume-driven growth to value creation. Relying solely on large-scale production and competitive pricing will no longer guarantee success in a market that increasingly values flexibility, technical textiles, smaller order quantities, faster turnaround times, and superior design.

While artificial intelligence will significantly enhance factory production capabilities, it cannot automatically generate unlimited consumer demand. Success will depend on understanding consumer behavior far more deeply—knowing why, how much, and how frequently shoppers will buy. By pairing technological efficiency with precise demand alignment and shared responsibility across buyers, retailers, policymakers, and consumers, the apparel sector can secure a resilient and truly sustainable future.

Note: The opinions expressed in this article are solely those of the writer.