Bangladesh’s inclusion in a United States investigation into alleged excess manufacturing capacity may send an uneasy signal to foreign buyers but is unlikely to create a major obstacle for exporters, industry leaders said.
The Office of the United States Trade Representative (USTR) on Wednesday launched a probe covering 16 economies, including Bangladesh, to examine whether their manufacturing sectors engage in excess capacity and overproduction that could harm US commerce.
The investigation will be conducted under Section 301 of the US Trade Act of 1974.
Officials will examine whether the policies, measures or production structures of the countries involved are unreasonable or discriminatory toward US trade.
Exporters said the move was “baseless” but stressed that similar investigations are not uncommon in international trade.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Senior Vice-President Inamul Haque Khan said it was unclear why Bangladesh had been included in the list.
“There is no reason for us to be worried or alarmed about it,” he said.
“If they investigate, we will extend all possible cooperation. Bangladesh has a strong position on the issues they want to examine,” he added.
Khan said a hearing is expected under the USTR process to assess whether any of the countries are involved in unfair trade practices, labour rights violations, export subsidies or intellectual property infringements.
“If evidence is found supporting such allegations, the US may impose additional tariffs,” he said.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem said the development was somewhat uncomfortable but not a serious challenge.
“Intellectual property practices in product manufacturing are still limited in Bangladesh and the market for US brands here is relatively small,” he said.
He added that labour rights issues have largely been addressed and export incentives are minimal.
“Questions could arise regarding agricultural subsidies, but the United States itself provides such support. In our case the government mainly subsidises fertiliser,” he said.
Hatem said the investigation could also reflect efforts by Washington to protect domestic industries.
“The US consumer market is the largest in the world. But including Bangladesh in the probe is not justified. Most of our exports to the US are ready-made garments and those products are generally not manufactured by American companies,” he said.
He said the Ministry of Commerce should prepare early to respond effectively to the investigation.
The countries named in the probe include China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Mexico, Japan, India and Bangladesh.
Former BGMEA Director Mohiuddin Rubel said the probe may also be linked to the United States’ broader trade strategy.
“The Trump administration wants to increase tariff revenue from imports. Since some earlier initiatives faced legal barriers in the courts, they may now be exploring alternative routes that have stronger legal backing,” he said.
Rubel said such investigations could also be used as leverage to encourage countries to negotiate new trade agreements with Washington.
Industry analysts said Bangladesh’s export structure, which is heavily concentrated in labour-intensive garment production, differs from sectors typically targeted in overcapacity investigations.
As a result, they expect the probe to have limited direct impact on the country’s export performance unless the investigation leads to new tariffs or trade restrictions.
