Exports to Latin America surge 29pc in 4 yrs

Bangladesh's strategic pivot toward non-traditional markets has hit a major milestone as its year-on-year exports to Latin American nations are increasing significantly.
Rising imports by Brazil and Chile have helped Bangladesh make a strong foothold in the South American market, analysts say.
Merchandise shipments to Latin America, especially ready-made garment (RMG), saw a 29.15 per cent growth over the last four fiscal years, pushing Bangladesh one step ahead in diversifying its export market, according to the Export Promotion Bureau's (EPB) official data.
The robust growth underscores the expanding footprint of local manufacturers in the South American continent.
This surge comes at a critical juncture as the nation actively pursues aggressive market diversification strategies to mitigate geopolitical vulnerabilities in its conventional Western strongholds.
According to the EPB data, Bangladesh exported goods worth $367.82 million to the South American market in the fiscal year 2022-23, which grew to $475.04 million in FY26.
In FY24, Latin American countries imported Bangladeshi products worth $362.02 million, which rose to $442.06 million in the following year.
Some Bangladeshi garment makers say if MERCOSUR - the Southern common market trade bloc comprising Brazil, Argentina, Uruguay, and Paraguay - eliminates tariff barriers, exports would boost significantly.
Bangladeshi products face high tariffs of up to 35 per cent when entering MERCOSUR.
This rate is part of the bloc's Common External Tariff (CET).
The high duty applies to non-member countries and makes Bangladeshi goods like clothing more expensive to sell in South America.
Local businessmen say men and women suits, sweaters, shirts, T-shirts, jute and jute goods, and leather and leather goods are the major export items from Bangladesh to South America.
According to the EPB, Brazil is the leading importer of Bangladeshi products.
Bangladesh exported goods worth $109.2 million to Brazil in FY23, which increased to $147.58 million in FY2024.
In FY25, shipments maintained momentum and reached $187.34 million, which jumped further to $ 214.69 million in FY26.
Beyond Brazil, Bangladeshi goods are seeing a notable momentum in a trio of South American economies.
Benefiting from a long-standing zero-duty benefit arrangement enacted for developing nations, Chile has evolved into a vital partner.
In FY26, Bangladesh exported goods worth $169.64 million to Chile.
Major shipments to the market included knitted T-shirts, formal men suits, and women's apparel.
Steadily moving up the ranks, Uruguay has absorbed escalating volumes of knitwear, sweaters, and specialised woven items as it imported $39.28 million worth of goods in FY26.
This absorption helped solidify Bangladesh's position in the Southern Cone of the continent.
While the overall trade volume remained relatively modest at $34.93 million in FY26, Argentina recorded a dramatic, multi-fold percentage increase in its imports from Bangladesh over the mid-term. Demand was spearheaded by knit sweaters, activewear, raw jute products, etc.
Analysts say the 29.15 per cent upward trajectory in Latin American shipments indicates that local exporters are successfully penetrating new geographical frontiers.
Trade experts highlight that navigating South America's high tariff barriers remains an operational hurdle.
To lock in these hard-won gains, trade groups like the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) are advising the government to initiate formal Free Trade Agreement (FTA) negotiations with MERCOSUR.
Securing preferential access is deemed essential for preserving cost competitiveness following Bangladesh's official graduation from the Least Developed Country (LDC) status.

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