Can Latin America Be Bangladesh’s Answer to US Tariff Hikes?

In 2025, the United States has dramatically shifted course on trade policy abandoning nearly a century of low tariff norms by imposing sweeping reciprocal tariffs across nearly all trading partners. Effective April 2025, a universal 10% surcharge was implemented on imports regardless of existing trade agreements, with average U.S. import tariff rates rising from roughly 2.8% to over 15% in just six months. Specific tariffs on products from Bangladesh have escalated to as high as 37%, causing deep concern among exporters and government officials alike.

For Bangladesh, an economy where ready‑made garments (RMG) constitute over 80% of exports, the U.S. remains the single largest market accounting for 18% of total export earnings, or approximately $8.69 billion in FY2024–25, up 14.4% from the prior year.

The country shipped $7.54 billion in apparel to the U.S. during that year, realizing 14% year-over-year growth despite an otherwise turbulent global market. Moreover, in early 2025, Bangladesh’s apparel exports to the U.S. surged by 26–46 percent, far outpacing competitors like Vietnam and China.

Yet even this upward momentum may be at risk. Industry stakeholders warn that the newly imposed 37% tariff on Bangladeshi exports could significantly undercut competitiveness, prompting urgent negotiations with U.S. counterparts to cap the rate, ideally near 10%. With mounting uncertainty, policymakers fear factory closures, job losses, and a realignment of sourcing toward lower‑cost suppliers in Asia or Africa.

Against this backdrop of escalating protectionism, Latin America emerges as a promising alternative. While previously benefiting from ultra‑low U.S. preferential tariffs (under 0.5% on average), developing countries in the region now face significantly higher duties averaging 13%, marking a 42-fold increase in some cases. This shift creates both challenges and opportunity: U.S. sourcing is diversifying away from China and traditional Asian suppliers, with countries turning toward Southeast Asia, Europe, and increasingly Latin American partners.

For Bangladesh, Latin America offers an under‑explored but potentially high‑growth market: a population of 650 million consumers, rising middle-class demand, trade blocs like MERCOSUR and the Pacific Alliance, and sectors under‑supplied domestically ranging from apparel to pharmaceuticals and light manufacturing. Initial interest is evident; for instance, Mexico’s ambassador has openly discussed collaboration on sectors like pharmaceuticals, fintech, and even automobile manufacturing with Bangladeshi counterparts.

2. Bangladesh’s Dependence on the US Market

The United States has long been a cornerstone of Bangladesh’s export strategy, particularly for its Ready-Made Garment (RMG) sector. In the fiscal year 2023–24, Bangladesh exported goods worth approximately $10.5 billion to the US, making it the single largest export destination, accounting for nearly 18% of total exports.

2.1 RMG: The Dominant Force

Within that total, RMG exports alone contributed $8.69 billion, representing over 82% of Bangladesh’s total exports to the US. This figure marks a 14.43% growth from the previous fiscal year, indicating the sector’s strong momentum despite global supply chain disruptions. According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), this growth positions Bangladesh as one of the fastest-growing apparel exporters to the US, outperforming regional competitors such as Vietnam and India.

In the first quarter of 2025, apparel exports from Bangladesh to the US surged by 26%, driven largely by the lower cost base and the growing preference of US buyers to diversify sourcing away from China (TBS News, 2025). Other emerging export categories included leather goods, footwear, jute products, pharmaceuticals, and frozen seafood though their contributions remained comparatively modest.

2.2 Tariff Hikes: Indirect but Inevitable Impact

While Bangladesh does not face the same level of direct tariffs as China, the global tariff wave triggered by US policies inevitably influences the competitive landscape. For example, as the US imposes higher tariffs on Chinese products (some exceeding 25–30%), American buyers are increasingly shifting to alternative sourcing countries like Vietnam, India, and Bangladesh. In the short term, this reorientation benefits Bangladesh, but it also raises the stakes: Bangladesh’s export volume to the US may rise rapidly but so may its exposure to future trade volatility.

Moreover, as the US adopts a uniform 10% global tariff hike across major product categories in 2025 (as part of a broader reshoring strategy), Bangladesh’s exports particularly in garments are already being subjected to tariff rates as high as 37%. Such steep increases could erode price competitiveness, reduce order volumes, and stall export growth if left.

2.3 The Danger of Overdependence

Bangladesh’s concentrated reliance on the US market especially for garments makes it particularly vulnerable to external shocks such as tariffs, policy changes, or economic downturns. A sudden drop in demand, rising protectionism, or shifting buyer preferences could ripple through the entire economy. This overdependence also limits Bangladesh’s strategic flexibility and puts the country in a reactive rather than proactive position.

In comparison, Bangladesh’s exports to Latin America, Africa, or even Southeast Asia remain below 5% of total volumes, highlighting an urgent need for market diversification. Exporters, policymakers, and trade bodies increasingly agree that while the US will remain vital, relying too heavily on a single market is a structural weakness Bangladesh can no longer afford to ignore.

3. Latin America: An Untapped Opportunity

As Bangladesh faces the mounting risks of overdependence on traditional export markets like the United States and the European Union, Latin America stands out as a relatively untapped but strategically important region for future trade expansion. With a combined population of over 650 million and a growing middle class, Latin America presents an increasingly attractive consumer base for diversified Bangladeshi exports including garments, pharmaceuticals, leather, jute products, and digital services.

3.1 A Diverse and Growing Economic Region

Latin America includes a mix of upper-middle and lower-middle income countries, such as Brazil, Mexico, Argentina, Chile, Colombia, and Peru, each with distinct economic strengths. The region’s collective GDP stands at over $5.7 trillion (2024), making it one of the largest regional economies in the world. In recent years, despite global turbulence, Latin American nations have posted steady growth across sectors like retail, healthcare, construction, and digital technology areas that align with Bangladesh’s export potential.

Consumer demand for affordable and high-quality products is on the rise. A McKinsey report from 2023 estimated that over 42% of Latin America’s population will belong to the middle-income group by 2025, a demographic shift that is driving demand for garments, home textiles, packaged foods, and generic medicines precisely the types of products Bangladesh specializes in.

3.2 Strategic Trade Blocs: MERCOSUR & Pacific Alliance

Latin America’s trade landscape is shaped by regional economic blocs designed to facilitate commerce, eliminate tariffs, and coordinate customs regulations. Two key blocs are particularly relevant to Bangladesh:

MERCOSUR (Southern Common Market)
Includes Brazil, Argentina, Uruguay, and Paraguay. As a customs union, MERCOSUR maintains a common external tariff, which can pose challenges for non-member countries like Bangladesh. However, MERCOSUR has increasingly pursued trade deals with Asian countries and could be open to future preferential access discussions with Bangladesh, especially in light manufacturing and pharma sectors.

Pacific Alliance
Comprising Mexico, Colombia, Peru, and Chile, this bloc is more open and trade-liberal, with fewer barriers for imports. The Pacific Alliance is actively promoting ties with Asia-Pacific countries and offers a more accessible entry point for Bangladeshi goods. Notably, Mexico and Colombia have expressed openness to diversified suppliers beyond traditional partners like China and the US.

These blocs are also part of larger integration frameworks such as the Community of Latin American and Caribbean States (CELAC), which engages in inter-regional cooperation with South Asia and could serve as a diplomatic gateway for Bangladesh.

3.3 A Natural Fit: Matching Bangladesh’s Strengths to Latin Needs

Several Bangladeshi export sectors align well with the emerging demands of Latin America:

Ready-Made Garments (RMG):
Latin American retailers, fashion brands, and importers are increasingly sourcing from cost-effective markets. Bangladesh’s strength in high-volume, price-competitive apparel offers strong appeal in countries like Mexico, Chile, and Brazil, where domestic production does not meet full demand.

Pharmaceuticals:
With low-cost generic drug production, Bangladesh’s pharmaceutical companies (e.g., Square, Beximco, Incepta) can find growing markets in Latin America, especially in healthcare-challenged nations that depend on imports.

Jute and Eco-Friendly Goods:
Countries like Brazil, Argentina, and Chile are actively promoting sustainable alternatives to plastic. Bangladesh’s jute products, such as bags, carpets, and home furnishings, align perfectly with this green shift.

Leather Goods & Footwear:
As middle-class consumerism grows, demand for affordable fashion products is surging. Bangladeshi leather goods and footwear are competitively priced and can appeal to this emerging segment.

ICT and Freelance Services:
A quieter but promising opportunity lies in IT services. As Latin American startups grow and digitization accelerates, there’s room for outsourcing and software services, where Bangladesh’s skilled freelancers and software firms can gradually gain ground.

Brazil Bangladesh Chamber of Commerce & Industry (BBCCI)

4. Competitive Landscape in Latin America

While Latin America presents a promising opportunity for Bangladesh, the region is far from untapped. Several global players particularly China, India, and Vietnam have already established strong commercial footholds across the continent. For Bangladesh to succeed, it must navigate a competitive landscape shaped by trade agreements, logistics networks, and diplomatic relationships, while leveraging its own comparative advantages.

4.1 China: The Undisputed Trade Giant

China remains the largest trade partner for most Latin American countries. In 2023, China–Latin America trade surpassed $480 billion, with China exporting electronics, machinery, textiles, and consumer goods, and importing natural resources such as copper, soybeans, and crude oil. Countries like Brazil, Chile, and Peru are deeply integrated into Chinese supply chains.

China’s deep market penetration is supported by:

Bilateral Free Trade Agreements (FTAs) with Chile, Costa Rica, and Peru.
Membership in regional initiatives like the China-CELAC Forum.
Strategic infrastructure investments under the Belt and Road Initiative (BRI), improving ports, roads, and trade corridors across Latin America.

This strong presence makes China a dominant competitor in both price-sensitive and high-tech sectors, including garments, home appliances, and consumer electronics.

4.2 India and Vietnam: Emerging but Aggressive Players

India is also expanding its footprint, particularly in pharmaceuticals, IT services, and agricultural machinery. Indian generic medicines have a growing market share in Brazil and Mexico, while Indian IT companies are serving Latin American clients through regional hubs in Argentina and Colombia.

Vietnam, like Bangladesh, focuses heavily on garments and textiles. Its early integration into global value chains and multiple free trade agreements (including CPTPP and EU-Vietnam FTA) allow it to export competitively to Latin America. Vietnam also benefits from government-backed export promotion efforts and greater integration with Asian-Latin American trade routes.

4.3 Trade Agreements and Supply Routes: The Gateways

Many countries in Latin America offer preferential trade access through regional trade blocs and bilateral agreements. While Bangladesh currently lacks FTAs with Latin American nations, key trade pathways include:

Panama Canal: A vital shipping route connecting East Asia to Latin America’s Atlantic ports.
Pacific Alliance: Open trade environment, offering simplified customs and logistics across Mexico, Colombia, Chile, and Peru.
MERCOSUR: Though more protectionist, this bloc has been signing agreements with Asia-Pacific countries and could present future negotiation opportunities.

In contrast, Bangladesh relies on longer shipping routes and faces higher logistical costs, particularly due to the lack of direct maritime links with most Latin American countries. As a result, trade is currently routed through transshipment hubs such as Singapore, Rotterdam, or Dubai, adding cost and time.

4.4 Bangladesh’s Comparative Advantage

Despite these competitive pressures, Bangladesh possesses several unique advantages that can be leveraged to enter and expand within Latin American markets:

Cost-Effective Manufacturing:
Bangladesh offers one of the lowest labor costs in the world, particularly in RMG, leather, and light manufacturing. While China and Vietnam face rising production costs, Bangladesh remains a cost-leader in producing high-volume goods.

Skilled and Expanding Workforce:
The country has a young, adaptive labor force, with growing training programs in industrial skills, English communication, and IT services. This makes it competitive in both manufacturing and digital exports.

Proven Export Capacity:
With annual RMG exports surpassing $47 billion, Bangladesh has the production scale, supply chain infrastructure, and experience in meeting global standards (e.g., WRAP, GOTS, LEED).

Green Production Leadership:
Bangladesh is home to the highest number of LEED-certified green garment factories in the world, aligning with Latin America’s increasing emphasis on sustainable sourcing.

In summary, while the Latin American market is highly competitive, it is not saturated. By offering competitive pricing, ethical manufacturing, and diplomatic engagement, Bangladesh can begin carving out market share especially in untapped sectors and under-served countries. Success, however, will require strategic positioning, logistical investment, and proactive trade diplomacy to catch up with early movers like China and Vietnam.

5. Market Access and Trade Barriers

Despite the potential and strategic importance of Latin America, Bangladeshi exporters face several critical hurdles in accessing these markets. From logistical constraints to institutional limitations, a variety of non-tariff and tariff barriers continue to discourage widespread entry. Addressing these challenges requires not only private sector initiative but also strong government-led trade diplomacy.

5.1 Challenges in Entering Latin American Markets

Language and Cultural Barriers
One of the most immediate challenges is the language divide. Latin America is primarily Spanish- and Portuguese-speaking, while most Bangladeshi exporters communicate in English. This linguistic gap affects everything from product labeling and marketing to business negotiation and after-sales support. Unlike Western markets, where English is the norm, building trust and closing deals in Latin America often requires localized communication.

Logistics and Shipping Constraints
Currently, Bangladesh lacks direct maritime or air connectivity with most Latin American nations. Exporters must rely on transshipment routes through ports like Singapore, Dubai, or European hubs causing delays and increasing shipping costs by up to 20–30% compared to shipments to Europe or the U.S. This undermines Bangladesh’s price advantage and poses difficulties for time-sensitive goods like perishable seafood or fast-fashion garments.

Tariffs and Duties
In the absence of preferential trade agreements, Bangladeshi goods often face Most Favored Nation (MFN) tariff rates, which can range from 10% to 35%, depending on the product and the country. For instance:

Brazil and Argentina impose high tariffs on textiles and apparel to protect local industries.
Countries like Mexico and Chile, though more liberalized, still apply duties that increase total landed costs for Bangladeshi exporters.

Certification and Compliance Requirements
Latin American countries require specific technical standards and certifications often aligned with U.S., EU, or regional standards. This includes:

Sanitary and phytosanitary (SPS) regulations for agro-products and seafood.
ISO or GMP standards for pharmaceuticals.
Labelling laws in local languages for garments, consumer goods, and food items.

Many Bangladeshi SMEs lack the capacity or awareness to navigate these complex regulatory systems, making market entry more difficult without intermediaries or trade facilitators.

5.2 Absence of Free or Preferential Trade Agreements

Unlike China, India, or even Vietnam, Bangladesh has no free trade agreements (FTAs) or preferential access frameworks with any Latin American country. This results in a significant competitive disadvantage, especially when other Asian exporters enjoy reduced or zero duties through bilateral or regional agreements.

There are currently no formal bilateral trade negotiations underway between Bangladesh and major Latin economies like Brazil, Mexico, or Chile. This lack of institutional linkage restricts deeper trade integration and hinders the scaling of exports beyond isolated shipments.

5.3 The Role of Multilateral Platforms

Despite these limitations, multilateral forums offer Bangladesh a channel to build diplomatic and commercial bridges with Latin America:

WTO (World Trade Organization):
As a WTO member, Bangladesh can raise trade access concerns and explore preferential frameworks, particularly under special provisions for Least Developed Countries (LDCs) (though Bangladesh is scheduled to graduate from LDC status by 2026).

CELAC (Community of Latin American and Caribbean States):
CELAC is an intergovernmental mechanism that promotes cooperation between Latin America and other global regions. Bangladesh, through the South Asian Association for Regional Cooperation (SAARC) or directly, can engage CELAC for dialogue, joint forums, and potential trade facilitation talks.

G77 + China and NAM (Non-Aligned Movement):
These platforms can support South-South trade cooperation, offering Bangladesh diplomatic channels to build partnerships in health, IT, garments, and food security.

Overcoming these barriers will not be easy, but it is essential for Bangladesh to grow its footprint in Latin America. Stronger B2B networking, government-led trade missions, targeted FTAs, and logistical infrastructure upgrades like pursuing direct shipping routes or regional warehousing can gradually reduce these challenges.

6. Policy and Diplomatic Engagement

For Bangladesh to transform Latin America from a distant possibility into a viable export destination, policy direction and diplomatic commitment are essential. While some groundwork has been laid, overall engagement with the region remains limited, fragmented, and reactive, especially when compared to Bangladesh’s proactive trade diplomacy in Europe and Southeast Asia.

6.1 What the Government of Bangladesh Is Doing (or Not Doing)

To date, Bangladesh does not have a formal trade strategy specific to Latin America. Trade with the region remains marginal less than 5% of total exports and no Free Trade Agreements (FTAs), Preferential Trade Agreements (PTAs), or even Memoranda of Understanding (MoUs) are currently in effect with key Latin economies like Brazil, Mexico, or Argentina.

The Ministry of Commerce and Ministry of Foreign Affairs (MoFA) have taken limited steps to explore bilateral opportunities, mostly at the margins of multilateral events or through ambassadorial-level engagements. However, no high-level trade delegation from Bangladesh has officially visited major Latin capitals in recent years, and no comprehensive market assessment or sectoral feasibility study has been undertaken by the government.

The absence of permanent missions or trade offices in key Latin American countries such as Brazil, Mexico, and Chile further restricts Bangladesh’s capacity to build sustained diplomatic and commercial relations.

6.2 Role of Missions, Trade Bodies, and Diaspora

Despite limited state-level coordination, non-state actors have shown increasing interest in bridging the Bangladesh–Latin America trade gap.

The Export Promotion Bureau (EPB) has occasionally included Latin American buyers in its international expos, though without follow-up engagement or market-specific programming.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Dhaka Chamber of Commerce & Industry (DCCI) have organized small-scale business networking events with Latin American embassies in Dhaka, including Mexico, Brazil, and Argentina.

The Brazil-Bangladesh Chamber of Commerce & Industry (BBCCI) a relatively new but active entity is playing a pivotal role in trade advocacy, promoting the “Made in Bangladesh Expo 2025” in São Paulo, and initiating dialogues with Brazilian private sector and municipal authorities. BBCCI has also proposed the establishment of a Bangladesh Trade & Cultural Centre in São Paulo.

While the Bangladeshi diaspora in Latin America is small, it is gradually growing particularly in Brazil, Mexico, and Chile where Bangladeshi migrants are involved in small business, textiles, and retail, acting as informal trade facilitators.

6.3 The Need for Targeted Trade Diplomacy

To succeed in Latin America, Bangladesh needs a structured and forward-looking diplomatic approach, including:

Opening or Strengthening Embassies with Commercial Wings
Focus should be placed on countries with high economic potential Brazil, Mexico, Chile, Colombia, and Argentina. Dedicated commercial counselors can support exporters and coordinate B2B matchmaking.

Signing MoUs, PTAs, and Sectoral Cooperation Agreements
Initiating preferential market access negotiations, especially in RMG, pharmaceuticals, agro-processing, and ICT, will create trade momentum and legal certainty.

Sending Targeted Business Delegations
Public-private trade missions, including sectoral representatives and SMEs, should be sent to major trade expos like EXPOALADI (Latin American Integration Association Fair), FIMEC Brazil (Footwear & Leather Expo), and Expo ANTAD (Retail and Food Expo, Mexico).

Hosting “Latin America Weeks” in Dhaka
These events can showcase export opportunities, offer buyer-seller meets, and promote cross-cultural engagement.

Engaging with Latin Chambers and Diaspora Networks
Leveraging networks such as Latin American embassies in Dhaka, regional business councils, and diaspora entrepreneurs will help build familiarity and business confidence.

In short, while trade with Latin America remains underdeveloped, the tools for greater engagement are within reach. What’s missing is a coordinated diplomatic vision, high-level policy commitment, and strategic outreach all of which can unlock a significant new market for Bangladeshi exporters.

7. Private Sector Readiness

Despite the rising awareness of Latin America’s potential as a new export frontier, most Bangladeshi exporters remain underprepared to enter and compete in this region. While there is growing interest particularly in garments, pharmaceuticals, and jute this interest is not yet matched with the strategic planning, market understanding, or institutional support necessary to scale operations in Latin America.

7.1 Are Bangladeshi Exporters Prepared for Latin America?

For the majority of Bangladeshi firms especially small and medium enterprises (SMEs) Latin America is still viewed as a distant, high-risk market with complex logistics, language challenges, and unfamiliar regulatory landscapes.

Limited market research: Most exporters lack updated data on consumer preferences, import regulations, or price benchmarks in Latin American markets.
Language and culture: Few Bangladeshi exporters have Spanish or Portuguese-speaking staff, making communication with buyers, customs agents, and partners difficult.
No local representation: Unlike in the EU or US, Bangladeshi exporters have few local agents, distribution partners, or warehousing facilities in Latin America.
Compliance capacity: Many SMEs struggle to meet technical standards related to labeling, packaging, and certifications required by Latin American import authorities.

As a result, most export activity to the region is limited to one-off or pilot shipments, often initiated by diaspora contacts, opportunistic orders, or trade fair interactions rather than long-term commercial strategies.

7.2 Success Stories and Early Initiatives

While limited, there are a few encouraging examples that hint at future potential:

Garments & Home Textiles: A few RMG exporters particularly those producing basic knits and sportswear have successfully completed test shipments to Mexico, Chile, and Brazil through sourcing agents or e-commerce partnerships.

Jute and Eco-friendly Products: Several exporters have reported growing interest from Brazilian and Chilean buyers for jute bags and home décor items as sustainable alternatives to plastic.

Pharmaceuticals: A handful of Bangladeshi pharma companies, such as Beximco and Square, have expressed interest in registering products in countries like Peru and Colombia, though registration costs and time remain barriers.

However, these examples remain isolated, small-scale, and underreported. There is still no consolidated export success from Bangladesh in Latin America that rivals its performance in Europe or North America.

7.3 Recommendations for Capacity Building

To equip Bangladeshi exporters for success in Latin America, a multi-tiered capacity-building strategy is essential:

Language and Market Training
- Offer subsidized courses in Spanish and Portuguese for export managers.
- Organize country-specific training programs covering import rules, buyer behavior, and distribution channels.

Regulatory Compliance Assistance
- EPB and BGMEA can help exporters understand and obtain product certifications, especially for garments, food, pharmaceuticals, and cosmetics.
- Create a “Latin America Desk” within trade bodies to support exporters with documentation, registration, and customs navigation.

Business-to-Business Linkages
- Encourage participation in regional expos and B2B meetings.
- Facilitate matchmaking platforms between Bangladeshi exporters and Latin importers, wholesalers, and retailers.

Export Financing and Insurance
- Strengthen export credit guarantees and insurance schemes to reduce risk in long-distance trading.
- Offer preferential financing to exporters venturing into non-traditional markets like Latin America.

Warehousing and Logistics Support
- Consider regional hubs or bonded warehouses in major ports like São Paulo, Lima, or Mexico City, perhaps through public-private partnerships.

Bangladesh’s private sector has the production capacity, product diversity, and competitive pricing to succeed in Latin America. What it needs now is knowledge, structure, and support systems to take that leap. With the right preparation and guidance, today’s untapped market could become tomorrow’s key growth frontier.

8. Strategic Recommendations

To fully capitalize on Latin America’s emerging potential as an alternative export destination, Bangladesh must take a proactive, coordinated approach involving government, private sector, and diplomatic channels. The following strategic recommendations outline a clear path for Bangladesh to diversify trade, deepen ties with Latin America, and build sustainable market presence.

8.1 Develop a Comprehensive Trade Diversification Roadmap

Bangladesh should formulate a national trade diversification strategy that explicitly includes Latin America as a priority region. This roadmap must:

Set clear export volume and market share targets for key Latin American countries over 3–5 years.
Identify priority sectors (e.g., RMG, pharmaceuticals, jute, leather, IT services) with the highest growth and competitive advantage.
Align with broader government goals on export promotion, supply chain resilience, and economic diplomacy.

A well-articulated strategy will help mobilize resources, synchronize policy, and track progress effectively.

8.2. Negotiate Bilateral and Multilateral Trade Agreements

To overcome tariff and non-tariff barriers, Bangladesh should prioritize trade negotiations with key Latin American economies and blocs such as:

Bilateral Preferential Trade Agreements (PTAs) with Brazil, Mexico, and Chile to lower tariffs and streamline customs procedures.
Engagement with MERCOSUR and Pacific Alliance for eventual access or observer status that enables better market integration.
Leverage multilateral forums like WTO, CELAC, and G77 to advocate for favorable trade terms and technical cooperation.

Formalizing trade agreements will enhance Bangladesh’s credibility, reduce risks, and provide exporters with tariff and regulatory predictability.

8.3. Incentivize Private Sector Expansion

Government policies should actively encourage exporters to explore Latin America through:

Export subsidies or tax breaks targeted at companies investing in Latin American market entry or capacity building.
Financial support for market research, certifications, and marketing campaigns in Latin America.
Capacity-building grants or soft loans for SMEs seeking to diversify exports.
Facilitating joint ventures or strategic partnerships with local Latin American firms to overcome market entry challenges.

Such incentives will lower the cost and perceived risk of venturing into unfamiliar markets.

8.4. Leverage Joint Ventures, B2B Platforms, and Digital Trade

Modern trade demands innovation and partnerships. Bangladesh can leverage:

Joint Ventures: Partnering with established Latin American manufacturers, distributors, or retailers can accelerate market entry and local acceptance. For example, RMG firms could collaborate with Latin apparel brands for co-branded products or local assembly.

B2B Platforms: Creating or joining online marketplaces tailored to Bangladesh Latin America trade can facilitate direct buyer-seller connections, reduce intermediaries, and increase transparency. Government-backed portals can also provide updated regulatory and pricing information.

Digital Trade and E-commerce: Expanding exports through digital channels—especially in IT services, software development, and consumer goods can bypass some logistical and tariff barriers. Bangladesh should support exporters in building cross-border e-commerce capabilities, including payment processing and last-mile delivery.

By embracing these strategic pillars, Bangladesh can transform Latin America from a peripheral target into a core pillar of its export diversification reducing risks associated with concentrated markets and securing sustainable economic growth.

9. Conclusion: A New Trade Horizon

As Bangladesh stands at a critical juncture in its export journey, the imperative for market diversification has never been clearer. The recent surge in US tariffs underscores the vulnerability of overreliance on a single market particularly one that accounts for nearly a fifth of the country’s export earnings. Expanding beyond traditional partners is not merely a defensive strategy but a necessary evolution to sustain growth, resilience, and global competitiveness.

Latin America offers more than just an alternative; it represents a strategic complement to Bangladesh’s existing export markets. With its large and growing consumer base, diverse economies, and expanding trade blocs, the region holds significant untapped potential across sectors where Bangladesh excels from garments and pharmaceuticals to jute and digital services. Engaging Latin America thoughtfully and systematically can open new avenues for value creation, investment, and long-term partnerships.

Realizing this vision demands a concerted effort: government agencies must lead with clear policies, trade diplomacy, and supportive frameworks, while the private sector needs to build capacity, explore innovative partnerships, and embrace market complexities. Together, through strategic collaboration, Bangladesh can chart a new trade horizon one where Latin America is a vital player in the country’s export success story.