Dbarta24 Business Desk – UK imports from Bangladesh surged by 15.1% over the four quarters ending Q1 2026, driven largely by robust demand for readymade garments, despite persistent administrative hurdles in other sectors.
Bilateral trade between Bangladesh and the United Kingdom reached £4.5 billion in the four quarters leading to the end of Q1 2026 (April 2025 – March 2026), marking a 12% increase compared to the previous period.
Figures from the latest Trade and Investment Factsheet published by the UK Department for Business and Trade highlight a growing trade imbalance in Bangladesh’s favor, powered by strong demand for Bangladeshi manufactured apparel.
Apparel Sector Leads Export Growth
Total Bangladeshi exports to the UK reached £3.8 billion during this period—an increase of £505 million (15.1%) year-on-year. Conversely, UK exports to Bangladesh fell by 2.5% to £700 million. This expanded the UK’s trade deficit with Bangladesh to £3.1 billion, up from £2.6 billion in the preceding year.
Readymade garments (RMG) remain the dominant driver of Bangladesh’s export portfolio, accounting for 92% (£3.3 billion) of all goods shipped to the UK—a 15.5% jump from the previous year.
Additional Bangladeshi exports included textile fabrics, machinery components, frozen fish, seafood, and footwear.
UK shipments to Bangladesh primarily comprised industrial and technological equipment. Power-generating machinery accounted for 51.7% of UK exports to Bangladesh, followed by general industrial machinery, electric motors, and scientific instruments.
| Metric | Four Quarters to Q1 2026 | Year-on-Year Change |
| Total Bilateral Trade | £4.5 Billion | +12.0% |
| Bangladeshi Exports to UK | £3.8 Billion | +15.1% |
| UK Exports to Bangladesh | £700 Million | -2.5% |
| UK Trade Deficit with Bangladesh | £3.1 Billion | +£500 Million |
| Bangladeshi Apparel Exports | £3.3 Billion | +15.5% |
Strategic Market Position and Foreign Investment
The data positions Bangladesh as the UK’s 53rd largest trading partner overall, ranking as the 36th largest source of UK imports and the 81st largest export market.
Bilateral Foreign Direct Investment (FDI) stock figures through year-end 2024 show total Bangladeshi inward FDI stock in the UK reached £1.1 billion—a 3.8% increase (£40 million) year-on-year. Meanwhile, UK outward FDI stock in Bangladesh stood at £848 million over the same period.
According to HM Revenue & Customs, approximately 1,100 VAT-registered UK businesses imported goods from Bangladesh in 2025, while around 600 UK-based firms exported products to Bangladesh.
Non-Garment Diversification Faces Bureaucratic Barriers
While garment exports continue to thrive, business leaders highlight untapped potential in non-apparel sectors due to systemic bottlenecks.
“While Bangladesh’s garment exports to the UK continue to grow, exports of other products are not increasing. The primary cause is administrative and bureaucratic complexity. If these processes are simplified and streamlined, there is substantial opportunity to export leather goods, agricultural produce, and fresh vegetables—items in high demand across the UK.”— Muhib Chowdhury, President of the British Bangladesh Chamber of Commerce and Industry (BBCCI)
Chowdhury added that capturing a broader share of the UK market will require Bangladeshi exporters to ensure rigorous international quality compliance and modernized processing standards.
Bangladesh’s economic relationship with the UK remains securely anchored by its competitive garment sector.
However, long-term expansion into high-value agricultural, leather, and consumer markets will depend on structural reforms inside Bangladesh to ease trade logistics and guarantee international processing benchmarks.