As Argentina is set to cut import duty on imported textiles and clothing and lead the country in economic growth in the Latin American region, Bangladesh and Argentina see steady growth in trade in the coming days, business leaders and diplomats in Dhaka and Buenos Aires said.

Argentina is set to lead Latin America in economic growth next year, according to the World Bank, which has raised the nation's 2025 forecast to 5.5 percent, the highest in the region.

Both countries are expecting the bilateral trade to $1-1.5 billion within the next two years, which is now around 800 million US dollar with Bangladesh’s export to the Latin American market being around only 20 million US dollars…

Bangladesh exported goods worth 18370312.55 US dollars  to Argentina during the July-May period of 2024-25  fiscal year. Bangladesh exported goods worth 9518214.73 US dollars during July-June period of 2023-24  fiscal year, according to the data of Export Promotion Bureau of Bangladesh .

Asif Ibrahim, Managing Director of Newage Garments Limited, said that Bangladesh needs extensive marketing policy to penetrate into the market of South America including Argentina.

Bangladesh’s 80 percent exports primarily go to the USA, and European Union (EU) counties, the United Kingdom, Japan and Canada, the government of Bangladesh is looking at the expanding export market in  Latin America counties, said a leader of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

To a question of recent tariff cut by Argentina on imported textile and clothing, Asif Ibrahim said that this measure will help penetrate into the market of the Latin American market.

Meanwhile, Economy Minister of Argentina Luis Caputo announced significant reductions in import taxes on clothing, footwear, and fabrics on March 14, 2025. The government will cut tariffs on clothing and footwear from 35% to 20% and reduce fabric tariffs from 26% to 18%.

Additionally, yarn tariffs will be lowered to ranges between 12% and 16%. President Javier Milei’s administration claims these measures aim to combat Argentina’s high retail prices and stimulate market competition.

Government data highlights the price disparity: a basic t-shirt costs 310% more in Argentina than in Spain and 95% more than in Brazil, while a jacket costs 174% more than in Spain.

The textile sector of Argentina employs approximately 539,000 workers across the entire value chain, with 290,000 jobs in direct industrial production. Industry representatives now express serious concerns about potential widespread job losses and business closures.

“Competition against imports of finished goods becomes unequal and unfair,” warned the Argentine Industrial Union in a recent statement. The organization emphasized that the trade liberalization agenda lacks accompanying measures to improve domestic competitiveness.

The Argentine Industrial Chamber of Clothing claimed the tariff reduction “will destroy thousands of jobs and national companies.” They urged the government to prioritize reducing taxes, cutting social security contributions, and addressing high financial costs before opening the market to imports.

The manufacturing sector already shows signs of strain. Three petrochemical factories have closed or converted to other businesses, while reports indicate at least 10 textile companies face imminent closure risk.

This move continues Milei’s broader trade liberalization strategy. In October 2024, the government reduced import tariffs on 89 goods across various sectors.

Additional measures include increasing personal import limits to $3,000 per shipment and introducing tax exemptions on the first $400 of personal purchases. The government will also allow companies faster access to the foreign currency market.

The government promotes these policies as necessary steps to increase competition, lower consumer prices, and tackle Argentina’s persistent inflation.

Critics argue that without addressing structural competitiveness issues first, the reforms will put domestic producers at a serious disadvantage. They believe this will make it harder to compete with international competitors that have lower production costs.

In short, the textile industry’s future now hangs in the balance as these new policies take effect in the coming days.

Ambassador of Argentina to Bangladesh Marcelo Carlos Cesa recently laid emphasis on structured engagement between Bangladesh and Argentina to identify new avenues of collaboration in trade, investment, and sectoral development.

“After reopening our Embassy in Dhaka in 2023, we have already observed immense potential in Bangladesh. A high-level delegation exchange could further explore specific areas of cooperation, particularly in export-import and foreign direct investment,” he said.

The envoy said this in a meeting with the International Chamber of Commerce (ICC) – Bangladesh, the world business organisation, at its office in the city.

The meeting was chaired by ICC Bangladesh President Mahbubur Rahman, who highlighted Argentina’s growing relevance in Bangladesh’s trade diversification strategy.

He also recalled the 2019 visit of Luis Miguel Etchevehere, the then government secretary for Agroindustry of Argentina, which laid the foundation for future cooperation in agriculture and agro-processing.

They welcomed the ambassador’s initiative and echoed the call for deepening business-to-business and institution-to-institution linkages between the two nations.

According to the latest figures, bilateral trade between Bangladesh and Argentina stood at US$765 million in 2022. Key Argentine exports include soybeans, corn, wheat, and cotton, while Bangladesh primarily exports garments and pharmaceuticals.

The Ambassador’s visit comes at a time when both nations are exploring avenues for joint ventures, particularly in energy, agribusiness, medical technology, and cotton trade. Cultural ties-such as Bangladesh’s passionate support for the Argentine football team-are also seen as a unique bridge to foster closer people-to-people connections.

With both sides expressing commitment to advancing the partnership, the meeting concluded with a shared vision of fostering a robust and diversified bilateral relationship in the years to come.

Meanwhile, former  Foreign Secretary Md Jashim Uddin has said Bangladesh wants to develop a concrete roadmap for multi-sectoral engagements with Argentina.

During a courtesy call from Argentina's Ambassador to Bangladesh Marcelo Cesa recently , Jashim emphasised the need for strategic priorities, long-term planning, and measurable outcomes.

The meeting also highlighted Bangladesh's interest in enjoying preferential access within MERCOSUR, the South American regional trade bloc, said the Ministry of Foreign Affairs recently.

The ambassador proposed holding Foreign Office Consultations early next year to discuss potential areas for cooperation.

He also requested Bangladesh to consider reopening its Embassy in Buenos Aires.

The foreign secretary assured the ambassador of the ministry's full support in facilitating engagements with chambers of commerce and trade bodies, while the Ambassador expressed his appreciation for the continued cooperation from the Ministry.

Ambassador Cesa commended the bold initiative taken by Bangladesh's interim government to accede to the International Convention for the Protection of All Persons from Enforced Disappearance, an important cause Argentina has long championed.

The football enthusiasm has already built a bridge between two nations, creating opportunities to expand bilateral cooperation across various sectors.

Both sides expressed keen interest in further collaboration in areas such as trade, agriculture and agro-processing industry, regulatory and policy frameworks, capacity building, shipping and connectivity, energy, sports, and education.

Meanwhile, Ambassador of Argentina in Bangladesh Marcelo Carlos Cesa held a meeting with the then Administrator of BGMEA and Vice-Chairman of the Export Promotion Bureau (EPB), at the EPB office in Dhaka on December 2, 2024.

The meeting focused on exploring potential areas of trade and investment and enhancing collaboration between Bangladesh and Argentina.

During the discussions, they emphasized the immense potential for boosting bilateral trade and investment through strengthened partnerships.

They highlighted the importance of increasing communication and fostering stronger ties between the business communities of both countries to unlock the full potential of trade opportunities.

Ambassador Marcelo Cesa and BGMEA Administrator Anwar Hossain underscored the need for organizing road shows and single-country fairs to facilitate direct communication between businessmen in Bangladesh and Argentina.

Such initiatives would provide an excellent platform for showcasing the strengths and capabilities of both countries, allowing businesses to explore new trade and investment opportunities.

Anwar Hossain briefed Ambassador Sesa on Bangladesh's strong focus on product diversification in the ready-made garment sector, particularly expanding into high-value apparel using man-made fibers

He sought the Ambassador's support in increasing garment exports to Argentina.

Administrator Anwar Hossain informed the Ambassador of Bangladesh's interest in importing cotton from Argentina, highlighting the mutual benefits of such a partnership. This collaboration could create a win-win scenario for both counties, contributing to the growth of their respective economies.

The BGMEA Administrator also requested the Ambassador’s assistance in simplifying the visa process for Bangladeshi businesspeople seeking to visit Argentina, to foster stronger business exchanges.