German Bangladesh Trade Relations
The political relations between Bangladesh and Germany are friendly. Germany was amongst one of the first European countries to acknowledge Bangladesh as an independent state in 1972. Germany and Bangladesh have been reliable partners towards each other whether it was development aid Germany provided to Bangladesh, cultural exchange between the countries or trade relations.
Germany is the second largest export market for Bangladesh after the United States. Between 2007 and 2010 the imports from Bangladesh as the German exports rose continuously. 95 % of imports from Bangladesh to Germany are Ready Made Garments. Far behind are leather goods and food with 1,3 and 1,4 percent. German Exports to Bangladesh are mostly machines (46 %), chemicals and electronic goods (18 % and 14 %). German ship-owners are producing ships in Bangladesh since a couple of years. German stock of direct investment is mostly within the sectors of textile, transport, logistics and building materials; the tendency is rising.
The Bangladesh German Chamber of Commerce (BGCCI) is with now almost 400 members the biggest bilateral chamber in Bangladesh and tries to promote trade in Bangladesh. The BGCCI has been a reliable partner since 2004 to help Bangladesh’s economy prosper more and more each year.
- Bangladesh German bilateral trade is worth over $4BN, weighted heavily in Bangladesh’s favour
- Exports to Germany are worth $3.4BN, and imports from Germany are worth $691m
- Over 90% of exports are RMG, so there is an opportunity to diversify, for example through light‐engineering
- Imports are more diverse, but capital machinery is key – machinery, boilers, electrical machinery etc. worth $350m
- Germany is Bangladesh’s #1 advanced western supplier, ahead of USA
- As Bangladesh moves up the value chain in manufacturing; looks for technical expertise to up‐skill the workforce; seeks advanced technologies to grow in an eco‐friendly way; sees a growing domestic demand for high‐end services, Germany is uniquely able to support Bangladesh in reaching its long‐term potential