The first edition of Best of Bangladesh (BoB) has come to an end. On September 4th and 5th, the Gashouder Westergas in Amsterdam was filled with professionals from various sectors to celebrate five decades of trade between Europe and Bangladesh – and a turnaround in the image of the producing country. The Tazreen Fashions fire (2012), the Rana Plaza collapse (2013) and a race to the bottom in garment workers’ wages are largely responsible for this image. The aim of the trade fair was to make it clear that Bangladesh, with its booming economy, has more to offer today.
The branding event is organized by Bangladesh Apparel Exchange (BAE). Exhibitors represent Bangladesh’s thriving economy, from pharmaceuticals and food to digital industries, but the focus is on innovative and sustainable items from the clothing and textile sectors – including leather, jute and handicrafts. FashionUnited visited the fair to explore the atmosphere and state of affairs.
Networking fair with Bengali funding
The interests of visitors are different, but the business deal is not the top priority; only a few buyers are present. Networking and orientation are the focus. “They are very concerned about their image in Bangladesh and this is a very beautiful place,” says a representative of the trade association IAF. “Instead of coming to the kingpins, Bangladesh is now doing its own event. I think that’s a strong statement.” CSR manager Ellen de Jong is taking part in the trade fair on behalf of the JOG Group, which produces in Bangladesh. “I think it’s very good that this event exists, especially in view of the rapid developments in the area of sustainability. This makes it clear again what needs to be done and that we as a brand need to have a conversation with our delivery companies.”
A design representative, who wishes to remain anonymous and has been doing business with Bangladesh for 30 years, sees many positive developments at the production sites. “Things are not much different in Bangladesh than in producing countries like India. I think there are a lot of misconceptions about it in society.” Among the experts there are also proud expats like volunteer Aditree Amin. She talks about the typical Bengali handicrafts on display such as Hogla basketry and embroidered quilts, Nakshi Katha. National dances, art and music also highlight the cultural element that makes BoB unique.
Panel discussions on sustainable sourcing practices and manufacturing challenges will shed new light on the key issues that have made the Bengali RMG industry its reputation. Representatives of major brands such as WE Fashion, G-Star Raw and Bestseller present their sustainable goals and action plans there. Relevant legislation for the Bengali industry is also briefly discussed, in particular the “EU Strategy for Sustainable and Circular Textiles” adopted in March: By 2030, all textile products on the EU market should have a long lifespan, be recyclable and partly made of recyclable fibers , free from dangerous substances and produced with respect for people and the environment.
Manufacturers from Bangladesh are given little speaking time. Interaction between the different parties is reserved for the exhibition space, which is a disappointment for visitors who were hoping for a refreshing conversation about sustainable fashion through the physical presence of participants from Bangladesh.
There is a certain level of reluctance among the exhibitors. For example, they reveal little about the price of sustainable compared to conventional options or the extent to which major brands are investing in these sustainable technologies. Innovations, on the other hand, are talked about with enthusiasm. Xavier Gratiean of Suad Garment Industries, for example, is proud of his modern machines used specifically for formal tailoring for brands such as Next and Guess. The group behind the company, Shin Shin, is committed to sustainable energy and water consumption, according to Gratiean.
A contact at Denim Expert reports that the company has its own recycling plant that allows for a 30 percent admixture (before consumption). “It’s a bit more expensive, but many of our customers are still choosing this option – even the big mass brands.” This trend is confirmed by Hasan Rahat of Pacific Jeans, the largest jeans manufacturer with a production of 120,000 pairs of pants per day. But he also admits that brands like Inditex and H&M sometimes drop out because of the price difference. Mohammad Monirozzaman of Jamuna Denims Weaving praises Jeanologia’s innovative ozone, eflow and laser machines. These help the denim supplier save water and energy.
Suppliers from the Bengali RMG industry in attendance gave an impression of the new wave of green LEED certified factories, of which Bangladesh is home to 200 as of this year. But reality remains a black box; the other 3,000 to 7,000 factories are not included in BoB.
No clear perspective for factory workers
The trade fair atmosphere is briefly interrupted by a campaign by the Campaign for Clean Clothing (CCC). The activists stand up in a crowded auditorium to point out the interests of factory workers since no unions were allowed to attend the fair. “It’s a shame,” says one of the activists. The action was triggered by the assassination of Shahidul Islam, a Bengali trade union leader who was recently killed after negotiating over unpaid wages. However, such discussions at the national level are imminent. The Bengal foreign minister announced a pay review at the BoB at the end of 2023 – the first in five years. The BoB management was not ready to comment on the absence of the unions.
CCC campaign coordinator Christie Miedema believes more pressure is needed. “Since 2013, a lot has happened in terms of safety in the factories covered by the International Accord. Child labor is no longer the most common problem. But that doesn’t mean there aren’t other important issues that need attention, such as low wages. The government must play an important role in improving the environment for independent unions in Bangladesh: the barriers to registering independent unions must be lowered and the process must be made more transparent. Factories must ensure that independent union organizers have access to workers.”
“Currently, the so-called yellow unions, which are loyal to management, often represent a major obstacle. It is incredibly important that brands show their appreciation for independent union activity in factories. Fair prices are also part of the solution. As long as brands come to Bangladesh primarily because of low wages, factories will continue to prevent workers from demanding higher wages and the Bangladesh government has no reason to improve freedom of association,” explains Miedema.
Of course, this problem cannot be blamed solely on the Bengali delivery companies. Due to their subordinate position in the supply chain and the intensely competitive market, they are dependent on legislation, on collaborations such as the International Accord and on the purchasing practices of brands that can give them more leeway.
Bengal RMG exports increase due to preferential trade
Bangladesh is the second largest clothing exporter in the world. Almost 80 percent of the country’s total export earnings come from the RMG industry, and Europe has a large share in this. With an export volume of 1.33 billion kilos of clothing to the EU last year, the country overtook China (1.31 billion kilos), the previous number one. Between 2015 and 2020, European brands ordered 14 percent more from Bangladeshi suppliers annually. The largest buyer is Germany with 7.28 billion orders in 2022, followed by Spain (3.27), France (2.74), Italy (2.01), Poland (1.83) and the Netherlands (1. 7).
This economic growth has everything to do with the country’s favorable trading position, we learn from Rensje Teerink, deputy director of the European Union’s Asia-Pacific EAD. Currently, Bangladesh is a “least developed country” (LDC), but it will leave this status behind in 2026. “Currently, under the ‘Everything But Arms’ (EBA) scheme, Bangladesh can import all products without tariffs and quotas Export Europe. No country has benefited from this as much as Bangladesh: At least 60 percent of all goods that come to Europe under the EBA scheme come from Bangladesh, and these are primarily textiles. If they ‘graduate’ to a developing country, They are no longer allowed to participate in the EBA and these benefits no longer apply. After a three-year blocking period, they then have to join the Generalized System of Preferences Plus (GSP+), which also makes their export more difficult. Exactly what rights they will then receive remains to be seen, as this legislation is still pending is not complete, but the conditions are stricter in areas such as human rights,” explains Teerink.
To continue to benefit from EU support under the GSP+, Bangladesh must also comply with the regulations. This is where the poor working conditions come into play again. After a panel discussion on the topic, former development cooperation officer Jos Huber asks a critical question: “When does the EU consider that Bangladesh has made sufficient efforts to address labor rights violations? The Commission may bite, but across the GSP system I can only remember two situations, unrelated to Bangladesh, where these tax breaks were suspended.” There are still many question marks, but from 2029 it will be Europe’s biggest Becoming a clothing exporter will no longer be so easy. Whether the BoB provides a realistic and complete picture of the progress in Bangladesh’s garment production remains to be seen, but the message of the fair is clear: to address the systemic challenges facing the garment industry, governments, brands, suppliers and unions must continue to work together.
This article originally appeared on FashionUnited.nl. Translated and edited by Simone Preuss.