Bangladesh Bangladesh's exports retain duty benefit to UK

[Isa Khan]

Bangladesh is one of the 65 countries that will retain duty-free access for 98 per cent of exports, including readymade garments, entering the UK market, the UK high commission said today.

"It is more generous than the European Union's scheme the UK was previously a member of," the high commission said in a statement as the UK's landmark Developing Countries Trading Scheme (DCTS) came into effect today.

The DCTS simplifies trading rules and cuts tariffs on products entering the UK from 65 developing countries, including Bangladesh.

It will help grow trade, boost jobs, and drive sustained economic growth.

This new scheme demonstrates the UK's commitment to a modern and mutually beneficial partnership with Bangladesh, the statement said.

Bangladesh is due to graduate from the least developed country status in 2026.

The scheme will contribute to developing countries' integration into the global economy, creating stronger trade and investment partners for the future, and strengthening supply chains.

The DCTS makes it easier to produce goods using components from other countries without losing duty free status.

Under the new scheme, Bangladesh will be able to participate in global value chains involving raw materials from 95 countries to export their final products to the UK duty-free, provided they meet certain requirements.

The DCTS promotes free and fair trade, human rights, and good governance.

Retention of DCTS preferences is based on respect for human and labour rights and compliance with relevant international conventions, including those on civil and political rights, anti-corruption, climate change and the environment, it said.

British High Commissioner to Bangladesh Sarah Cooke said the DCTS will support Bangladesh's manufacturing capacity, increase long-term economic growth and resilience, and allow it to access global supply chains.

"It benefits the UK through greater consumer choice and competitive prices. This announcement underscores our commitment to a modern and mutually beneficial partnership with Bangladesh, based on deeper, economic and trade ties and global standards."

'Time to diversify export basket to UK'

FBCCI president says at event on Bangladesh-UK trade

www.thedailystar.net

 

[Isa Khan]

After graduating from the Least Developed Country (LDC) status, Bangladesh will get duty-free export facilities for 92% of tariff line products, including ready-made garments (RMG), in the UK market.

The UK has also assured Bangladesh of lifting the existing ban on betel leaf export from the country, said sources present at a meeting of the joint working group formed for the expansion of bilateral trade and investment between the two countries.

"The UK delegation said their Developing Countries Trading Scheme is very generous and flexible. Under the UK policy, Bangladesh will get duty-free export facilities for 92% of manufactured goods, including garments, after graduating from Least Developed Country status," Md Abdur Rahim Khan, additional secretary (Export) of the commerce ministry, who led the Bangladesh delegation at the meeting held in the capital yesterday, told The Business Standard.

Commerce ministry officials said the UK will continue providing Bangladesh with different facilities under the Generalised Scheme of Preferences (GSP) for three years as a transition period after LDC graduation in 2026. The group of least developed countries, including Bangladesh, has applied to the World Trade Organisation seeking GSP benefits for six years after LDC graduation. At the joint working group meeting yesterday, Dhaka also proposed that the UK continue the facilities for six years following LDC graduation as a transition period.

The UK delegation said they will discuss the matter at their policy level, a senior official present at the meeting told TBS.

Before Brexit, the European Union imposed a ban on betel leaf imports from Bangladesh almost a decade ago. In 2021, the EU lifted the ban, but it is still in place in the UK.

In response to Bangladesh's request yesterday, the UK delegation said they too will follow the EU's decision to lift the ban on betel leaf export and discuss the matter with their Food Standards Agency, said Md Abdur Rahim Khan.

At the meeting, Bangladesh also discussed increasing the export of agricultural products – especially frozen fish, shrimp, frozen foods, mangoes and vegetables – to the UK.

On the other hand, the UK has emphasised the formulation of rules regarding cross-border higher education and the enforcement of intellectual property rights.

According to commerce ministry data, Bangladesh's merchandise exports to the UK peaked at $5.3 billion in fiscal year 2022-23 (FY23), up from $4.8 billion in the previous fiscal year, and double the figure from a decade ago when it stood at $2.7 billion.

Key export items contributing to this achievement include ready-made garments, frozen food, IT, engineering, leather and jute goods, as well as bicycles. Approximately 80% of the exports comprise knitwear and woven garments.

Bangladesh's imports from the UK amounted to $380 million during the first 11 months of FY23 till May. It was projected to reach around $450 million by the end of the fiscal year on 30 June, as stated by a senior official at the commerce ministry.

Currently, the UK is the third largest export destination for Bangladesh, following the European Union and the United States.

UK offers duty-free access for 92% Bangladeshi exports

Commerce ministry officials said the UK will continue providing Bangladesh with different facilities under the Generalised Scheme of Preferences (GSP) for three years as a transition period after LDC graduation in 2026.

www.tbsnews.net