Bangladesh can gain from the ongoing trade war between the US and China. The US-China trade war has come as a boon to Bangladesh’s textiles and apparels. However, Bangladesh faces capacity constraints ranging from poor infrastructure to red-tape to skilled labor, which are barriers to reaping benefits arising from the trade war.

Western retailers and brands want a smooth supply chain in apparel business but the trade war has disrupted business in China. As China has been losing its apparel business due to new tariffs, many western retailers and brands are shifting their work orders to other countries like Bangladesh. China had already become expensive for US-based clothing retailers. The trade war is further pushing them in the direction of Bangladesh.

But it all depends on how the country utilises it. Garment exporters in Bangladesh will get cheaper raw materials as a result of cheaper cotton prices in the international market. Bangladesh has also benefited from lower cotton prices. These decreased ten per cent after China imposed a high duty on the import of the natural fiber from the US. Garment exporters hope to get more orders in coming days.