In 2022, Vietnam emerged as Canada's second-largest apparel exporter, surpassing Bangladesh, largely due to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Bangladesh's apparel exports to Canada reached $1.73 billion, recording a solid 35.2% growth compared to the previous year.

While China remains the leading apparel exporter to Canada, both Bangladesh and Vietnam have made significant progress. Over the past five years, Bangladesh's market share in Canada increased from 11.61% to 13.9%, while China experienced a decline from 38.53% to 30%.

Vietnam Surges in Canadian Apparel Exports

However, Vietnam's exports experienced an even more remarkable surge, totaling $1.75 billion, with a growth rate of 46.35%. The CPTPP, which facilitated duty-free access between Vietnam and Canada, played a crucial role in Vietnam's achievement.

Although Bangladesh currently enjoys duty-free market access to Canada, this advantage might change after its transition from a least developed country (LDC) to a developing nation in 2026.

Bangladesh Faces Duty Challenge

Consequently, Bangladesh may face a 17% duty on its apparel products, while Vietnam will maintain its duty-free privileges. These developments underscore the importance of diversifying product offerings and exploring trade agreements to sustain competitiveness and secure continued access to the market.