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Bangladesh’s trade deficit with Switzerland has widened sharply over the past several years, as imports from the European country continued to rise while Bangladeshi exports lost momentum.

According to a commerce ministry report, Bangladesh’s exports to Switzerland fell to $77.71 million in FY25 from $106.87 million in FY19. Over the same period, imports climbed to $492.10 million from $272 million, pushing the bilateral trade deficit to a record $414.39 million.

Officials said the imbalance has been widening steadily since FY19, driven by strong demand for Swiss high-value industrial goods and Bangladesh’s narrow export basket.

A senior official said Bangladesh’s exports to Switzerland remain heavily concentrated in readymade garments, which account for more than 90% of shipments. Other products—such as footwear, ceramics, leather goods and agro-based items—have yet to gain meaningful market share.

In contrast, imports from Switzerland are broad-based and largely high-value, including machinery, electrical equipment, pharmaceuticals, precision instruments, chemicals and processed food.

“The nature of imports reflects Bangladesh’s industrial demand for advanced technology and high-quality inputs that are not produced locally,” the official said.

Trade experts pointed to structural weaknesses in Bangladesh’s export sector, including limited product diversification, compliance hurdles and weak branding in premium markets.

An industry leader said logistics is also a major disadvantage. While products from countries like Turkey can reach Switzerland within a week, shipments from Bangladesh typically take at least four weeks, reducing competitiveness in a fast-moving market.

He said Bangladesh can narrow the gap by diversifying exports and attracting greater Swiss investment.

The commerce ministry has identified pharmaceuticals, jute and jute goods, leather products, ceramics, bicycles and ICT services as sectors with export potential. Officials said Bangladesh’s pharmaceutical industry, particularly generic medicines, could find opportunities in Switzerland’s high-value healthcare market.

Commerce Minister Khandaker Abdul Muktadir has also urged more Swiss investment in sectors such as pharmaceuticals, leather, light engineering and shipbuilding to strengthen economic ties.

The Swiss side has expressed interest in expanding trade and investment, saying stronger cooperation could help reduce the widening imbalance.