Bangladesh’s multilateral engagement, particularly in economic sector with Brazil, the largest economy of Latin America and an important member of BRICS (Brazil, Russia, India, China and south Africa) has increased as both Dhaka and Brasilia are exploring every avenue to reach the relations between two countries to a new height in new perspective, sources said.
As Bangladesh has become an emerging economy in the region and has maintained a steady economic growth over 20-25 years, Brazil’s President Luiz Inácio Lula da Silva has decided to expand multilateral engagements especially in the trade and investment with the South Asian country, diplomatic sources.
Brazil, as the largest economy in South America, is keen to increase trade relations with Bangladesh, as Bangladesh has emerged as a new economic giant in the South Asian region, said Brazil Ambassador to Bangladesh Paulo Fernandos Dias Feres.
Over the years, the government of Bangladesh has been working on increasing economic engagement with major Latin American countries, particularly with Brazil, said a Bangladesh diplomat while talking to this correspondent.
Bangladesh exported goods worth 187 million US dollars to Brazil in 2024-25 fiscal year as against 147 million in 2023-24 posting 26 per cent growth over the previous fiscal year, according to the data of the Export Promotion Bureau (EPB).
Bangladesh exported 16 million (15820218.43 US dollars) in the month of July in 2025-26 fiscal year, according to EPB. Bangladesh exported goods worth 175 million US dollars to Brazil during July-June period of the 2022-23 fiscal year.
Against this backdrop, Bangladesh is suitably poised to increase economic engagement with Brazil, which is likely to end the year with a GDP of $2.13 trillion, overtaking Canada’s estimated $2.12 trillion, according to the IMF estimation.
Meanwhile, Bangladesh is seeking to tap into the untapped readymade garments (RMG) market in Brazil to reduce the widening trade gap between the two countries, Sources said in Dhaka and Brasilia.
Brazil was the fifth-largest import source for Bangladesh in the 2022-23 fiscal year, with imports recorded at $2,592.5 million (3.80 percent of total imports), according to data from the Bangladesh Bank. The total import value for Bangladesh was $68,459.9 million during this period.
Meanwhile, Bangladesh’s export to Brazil, the largest market Latin America, during last 2022-23 fiscal year posted some 60 per cent growth over the previous 2021-22 fiscal year, according to data of the Export Promotion Bureau (EPB)
In the 2021-22 fiscal year, Bangladesh exported goods valued at $109.20 million to Brazil. The main products that Bangladesh exported to Brazil were Jerseys, pullovers, cardigans, waistcoats and similar articles; knitted or crocheted, shirts; men’s or boys’ (not knitted or crocheted), and suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear); men’s or boys’ (not knitted or crocheted).
During the 1995-2020 period, exports of Bangladesh to Brazil have increased at an annualized rate of 9.08 per cent, from $15.1 million in 1995 to $132 million in 2020.
In the 2021-22 fiscal year, Brazil exported goods valued $2,245.1 million US dollars to Bangladesh. The main products that Brazil exported to Bangladesh were cane or beet sugar and chemically pure sucrose, in solid form, cotton; not carded or combed, and soybeans, whether or not broken.……..
As the fourth supplier in order of rank, Brazil sold goods worth USD 2661.8 million (4.2%) during 2023-2024 compared to USD 2592.5 million (3.8%) during the previous year, according to Bangladesh Bank data.
The Bangladesh Bank data show that Brazil export to Bangladesh showing an upward trend during 2024-25 fiscal year. Though total data has not been calculated yet, quarterly data shows an upward trend.
Brazil exported goods worth 556.6 million US dollars to Bangladesh during January-March period of 2024 calendar year that rose to 757.9 million US dollars during January—March period of calendar 2025. Brazil exported goods worth 682.5 million US dollars to Bangladesh during 2024, according to the data of the Bangladesh Bank.
Brazil was the fifth largest import source of Bangladesh in 2022-23 fiscal year with import recorded at 2592.5 million US dollars (3.80 per cent of total import). The total import of Bangladesh recorded at 68459.9 million US dollars, according to the data of Bangladesh Bank.
Brazil was the eighth largest import source of Bangladesh in 2021-22 fiscal year with import recorded at 2245.1 million (3.00 per cent of total import). The total import of Bangladesh recorded at 75,604.4 million US dollars, according to the data of Bangladesh Bank.
Bangladesh exported goods worth 175 million US dollars (175538064.3 US dollars) to Brazil as against its import of 2592.5 million making a trade gap of overt 2400 million US dollars.
In 2023, Brazil’s textile and clothing imports were valued at approximately $5.8 billion, with China being the largest supplier at over $3.4 billion. India and Paraguay were the second and third largest suppliers, with imports of around $270 million and $230 million, respectively.
Brazil’s textile and clothing industry had a negative trade balance of $5.6 billion in 2023.
Brazil’s textile and clothing exports fell for the first time in six years in 2023. The main reason for this was a decline in exports of cotton fibers, yarns, and woven fabrics. Textile production in Brazil increased slightly in 2023, but clothing production decreased.
According to sources in Dhaka and Brasilia, some 7,000-8,000 expat Bangladeshis are living in Brazil. However, the number of expat Bangladeshis is rapidly increasing.
A Bangladesh diplomat who has worked in Bangladesh mission in Brasilia said that Bangladeshis living in Brazil don’t necessarily get registered with the mission of Bangladesh.
Former BGMEA Vice-president Shahidullah Azim while talking to this correspondent recently said that Bangladesh should penetrate deeply into the Latin American market, especially in Brazil as the latter is becoming an emerging economy in the Latin America.
“The competitiveness and strength of our textile and clothing industries have increased over the last 40 years since the journey began in the late 70s. Brazil is an important economy in the Latin America. Our exporters have the capacity to tap that market” said Shahidullah Azim while talking to this correspondent.
He said an increased export of readymade garments to Brazil market will help reduce widening trade gap with the Latin American market.
Shahidullah Azim, Managing Director of Classic Fashion Concept Ltd, a leading readymade garment exporter, said Bangladesh should start talks on signing FTA with major importing countries to maintain present export growth.
After LDC graduation in 2026, Bangladesh is likely to experience high tariff in major importing countries that may cut competitiveness and export of the country, Azim said.
Brazil imported textiles and clothing worth 5.9 billion US dollars in 2022. China was top exporter with 3476.1 million US dollars, followed by India with 317.7 million US dollars , Paraguay 230.3 million US dollars, USA with 156.3 million US dollars, Vietnam with 151.6 million, Bangladesh with 150.6 million and Indonesia with 138.1 million US dollars….
By 2026, Brazil could rise one position and become the eighth largest economy on the planet, with an estimated GDP of $2.476 trillion, the IMF argues.
Brazil’s economy is the seventh largest in the world, and accounts for more than 40% of Latin America’s economy. The country is also the seventh largest consumer market in the world
With GDP per capita of Brazil is hovering around $9,312.00, Bangladesh is interest to increase engagement with the largest Latin American country.
In 2023, the BRICS bloc now accounts for 37.4% of global GDP, compared to the G7’s 29.3%
A top official of the commerce ministry while talking to this correspondent said that Bangladesh will explore pros and cons of exporting goods to Brazil market
Brazil is the fourth largest cotton producer and second top exporter while Bangladesh is the second largest cotton importer in the world.
A top leading business of the country while talking to the daily said Brazil is looking at expanding consumer market in Bangladesh with a total population of 180 million
Bangladesh and Brazil have increased their engagement in multilateral sectors especially in the trade and investment as the bilateral trade between the two countries marked a higher growth in recent times, he said
Brazil can import more products including jute and jute goods and leather items from Bangladesh to ensure the trade balance between the two countries, he continued.
………… Meanwhile, Brazil’s economic growth will stay on track despite the imposition of U.S. tariffs, according to a Reuters poll of economists, but inflation appears at greater risk of worsening if trade negotiations flounder, according to Reuters.
U.S. President Donald Trump threatened this month to set a 50% duty on Brazilian goods on August 1 in a spat with his counterpart Luiz Inacio Lula da Silva, who vowed to retaliate if diplomacy broke down.
However, even under steep tariffs, Brazil’s economy should continue expanding at a gradual rate in 2025 and next year with the help of a resilient jobs market.
Brazil’s gross domestic product (GDP) is forecast to increase 2.2% this year and 1.7% in 2026, according to the median estimate of 38 analysts polled on July 14-21.
As in other countries, economists are mostly sticking to a baseline scenario with moderate tariffs. Both forecasts were slightly better than the consensus view of 2.0% and 1.6%, respectively, in an April survey.
“The domestic labor market remains quite tight, with unemployment at new lows and the real wage mass still expanding at a brisk pace,” said Roberto Secemski, a Barclays economist.
“At the margin the uncertainty from tariffs reduces those upside risks, but we don’t see them derailing growth at this point.”
In the poll, inflation is forecast to slow to 4.4% next year from 5.2% in 2025, just a sliver below the top end of the central bank’s goal of 3.0% plus or minus 1.5 percentage point.
On potential tariff negotiations between the U.S. and Brazil, 13 of 16 participants who shared a view expected the August 1 deadline set by Washington to be extended, giving room for talks.
Asif Ibrahim, former DCCI president and Managing Director of New Age while talking to this correspondent said Latin American markers like Brazil, Argentina and Uruguay remain untapped though Bangladesh is the second largest exporter of clothing in the global market. Asif Ibrahim some Bangladeshi garment products are being exported to Brazil through some top global market. Bangladesh hardly directly exports readymade garments (RMG) to Brazil markets. He said that collective efforts of BGMEA, Export Promotion Burau (EPB), Bangladesh missions in Latin America and Latin American missions in Dhaka can play a key role into penetrating into Latin American markets..
Brazil, the largest economy in South America, will leave no stone unturned to increase trade relations with Bangladesh as the latter has become a new economic giant in the South Asian region, said Brazil Ambassador to Bangladesh Paulo Fernandos Dias Feres
