The trade gap between Bangladesh and Switzerland has widened significantly in recent years, tilting increasingly in favour of the European country, according to a latest report of the Ministry of Commerce.
A senior commerce ministry official said that the imbalance had been growing since the financial year 2018-19, driven by a steady rise in imports from Switzerland alongside stagnating exports from Bangladesh.
Official data shows that Bangladesh's exports to Switzerland declined from US$106.87 million in the FY'2019 to $77.71 million in the FY'2025.
In contrast, imports surged from $272.0 million to $492.10 million over the same period, pushing the trade deficit to a record $414.39 million in the FY 25. Although exports saw a temporary recovery in the FY2022 to $107.06 million, the upward trend could not be sustained.
Imports, on the other hand, remained consistently high, peaking sharply in the latest fiscal year.
The commerce ministry official said Bangladesh's export basket to Switzerland remains heavily concentrated, with readymade garments accounting for over 90 per cent of shipments.
Other export items include footwear, ceramic products, leather goods and some agro-based items, but these have yet to gain significant market share, he said.
In contrast, imports from Switzerland are diversified and largely high-value, including machinery, electrical equipment, pharmaceutical products, precision instruments, chemicals and processed food items.
"The nature of imports reflects Bangladesh's industrial demand for advanced technology and high-quality inputs, which are not produced locally," the official said.
Trade experts attributed the widening gap to structural weaknesses in Bangladesh's export sector, including limited diversification, compliance challenges and insufficient branding in high-end markets like Switzerland.
The President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Mohammad Hatem, said that Bangladesh exports garments to advanced markets such as the United States, European Union, Canada and Oceania.
He said that time constraints are a major reason for slow export growth.
He noted that Switzerland is increasing imports of ready-made garments (RMG) and food products from Turkey because products can reach Switzerland from Turkey in 5-7 days.
In contrast, it takes Bangladesh at least four weeks to deliver goods to Switzerland.
He also said that many Swiss people in cities like Zurich, Geneva, and Bern often shop in nearby countries such as Germany and France.
Hatem said that Bangladesh can increase trade with Switzerland by diversifying products and attracting Swiss investment.
At present, annual trade between Bangladesh and Switzerland is about $580 million, he said.
Experts from the commerce ministry in the report recommended that Bangladesh can reduce the trade gap by expanding exports in sectors like pharmaceuticals, jute and jute goods, leather products, ceramics, bicycles, and ICT services.
They said the pharmaceutical sector has strong potential in Switzerland's high-value market, especially for quality generic medicines.
Commerce Minister Khandaker Abdul Muktadir also urged Swiss investors to invest in Bangladesh's service sector to strengthen bilateral relations.
He asked Switzerland to support Bangladesh's request for a three-year extension of its Least Developed Country (LDC) graduation process.
These issues were discussed in a meeting with Swiss Ambassador Reto Renggli at the Secretariat last month.
Bangladesh already enjoys duty-free access to the Swiss market under the GSP facility.
The minister said Swiss products are well known for their quality in Bangladesh, and competitively priced goods could attract more buyers.
He said that more Swiss investment in sectors like pharma, leather, light engineering, and shipbuilding would help boost trade.
Ambassador Reto Renggli said there is a large trade gap between the two countries and stronger cooperation can help reduce it. He also said Switzerland is interested in expanding trade and investment in Bangladesh.
So far, Switzerland has provided over $1.3 billion in development assistance to Bangladesh, including contributions through international financial institutions.
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