Bangladesh's garment exports to Turkey fell 21.58 per cent last fiscal due to the exorbitant duties slapped by the latter and the devaluation of the euro. Turkey imposed a 17.5 per cent duty on apparel imports from least developed countries in 2011 to safeguard its local industry. Being a least developed country, Bangladesh's garment exports to Turkey have begun declining since then. Bangladesh's garment exports to Turkey were rising fast a few years ago because of a zero-duty benefit.

Prior to the imposition of duty, Turkish importers used to purchase Bangladeshi garments in bulk and re-brand the goods with new logos to export them to Russia. But demand for Bangladeshi T-shirts, shirts, trousers and sweaters is still high in Turkey due to competitive prices. In addition to the duties, the devaluation of the euro against the Bangladeshi taka is another reason behind the decline in export value. Payments between Turkey and Bangladesh are settled in euro.

Bangladesh on several occasions has requested the Turkish government to remove the duties but that has not happened. Following the imposition of safeguard duties by Turkey on readymade garment imports from Bangladesh, Bangladesh’s export earnings experienced a drastic fall.