For the first time in modern maritime history, both of the Middle East’s critical shipping chokepoints—the Strait of Hormuz and Bab el-Mandeb (Red Sea)—are simultaneously closed or under active threat to major commercial shipping. Following the launch of US-Israeli strikes on Iran on February **, ****, Iran declared the Strait of Hormuz closed to Western-allied vessels within ** hours. Tanker traffic collapsed from approximately *** vessels per day to near-zero. Within the same **-hour window, Houthi forces in Yemen threatened to resume attacks on Red Sea shipping, forcing Maersk to re-pause all trans-Suez sailings just weeks after a **-month diversion had finally ended.

All four major global container carriers—Maersk, MSC, CMA CGM, and Hapag-Lloyd—suspended Gulf transits on March *. P&I war risk insurance was cancelled by more than ** International Group clubs, effective March *. Dubai’s Jebel Ali port, the critical transshipment hub for South Asian textile manufacturers, has been struck by Iranian missiles and drones, operating at severely reduced capacity. Gulf airline cargo capacity—Emirates, Qatar Airways, Etihad—is down by over ** per cent, crippling the air freight corridor that Bangladesh’s garment exporters depend on for time-sensitive deliveries to Europe.

The sector has navigated shocks before, including price wars, factory compliance reforms, political instability and swings in global demand. What makes the current moment different is the simultaneity of pressures. Financial strain, weakening export momentum, rising competition and geopolitical disruptions are emerging at the same time, just as Bangladesh approaches a major transition in its global trade status.

According to export performance data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), compiled from Export Promotion Bureau (EPB) statistics, Bangladesh’s ready-made garment (RMG) exports reached $**.** billion between July **** and January ****, accounting for about ** per cent of the country’s $**.** billion merchandise exports. The International Labour Organization estimates that the export-oriented garment sector employs around * million workers, highlighting the scale of an industry central to Bangladesh’s economy.

The latter’s Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan and director of the former’s State Secretariat for Economic Affairs Helene Budliger Artieda agreed that Vietnam and the EFTA will try to conclude talks by late June 2026 on the sidelines of the EFTA ministerial meeting in Iceland,.

Switzerland and Vietnam have agreed to accelerate negotiations on a free trade agreement between Vietnam and the European Free Trade Association (EFTA), aiming to conclude discussions during the 20th negotiation round in Hanoi.
Both sides are targeting finalisation by late June 2026 in Iceland, with the pact expected to drive investment, create jobs and facilitate technology transfer.

The proposed FTA will create new opportunities for Swiss enterprises to expand investment in Vietnam, helping generate jobs, foster technology transfer and support the country’s modernisation drive over the next five years, a domestic news agency reported.

The agreement is also expected to significantly strengthen trade and investment links between Vietnam and Switzerland, while enhancing regional supply chains and promoting sustainable growth.

Fibre2Fashion News Desk (DS)