The US will help Bangladesh reach its goal of exporting readymade garments worth $50 billion by 2021. The readymade garment sector has been the engine behind the remarkable story of Bangladesh’s economic growth. The United States is the largest single buyer of Bangladeshi garments. It works closely with the Bangladesh government, brands, factory owners, and unions to strengthen workers’ safety and labor rights and to foster a stronger industry.

The US will work with two Bangladeshi banks to fund a $22 million credit guarantee to facilitate loans for safety improvements in the country’s readymade garment factories. It has been working to improve labor conditions and support the freedom of association in Bangladesh.

Through grants to the Solidarity Center, USAID provided training to approximately 11,000 readymade garment workers on collective bargaining, union leadership, industrial dispute resolution, media and organisational democracy.

The US can use tariff revenues generated from Bangladeshi garment exports as aid to improve the labor standards of garment factories in Bangladesh. The readymade garment sector accounts for 81 per cent of Bangladesh’s overall exports. About 5,000 factories employ about 3.6 million workers (of a total workforce of 74 million). The country has an aim of reaching $50 billion in exports by 2021.