Country needs to align with EU Green Deal to safeguard RMG exports
Staff Reporter:
Bangladesh must swiftly adopt a national strategy for product traceability and sustainability to protect its crucial Ready-Made Garment (RMG) exports to the European Union, which currently represents 92% of the country’s trade with the bloc.
Experts caution that compliance with the EU Green Deal — particularly the Digital Product Passport (DPP) requirements — must be ensured by around 2030.
This message dominated a high-level policy dialogue on Product Traceability held in Dhaka, organised by the Ministry of Commerce in partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH under the STILE-II project, according to a press release.
Delivering the keynote, Ferdaus Ara Begum, CEO of BUILD, said traceability is now a national imperative as the EU introduces new regulations under its circular economy agenda, including DPPs, responsible business conduct standards, and sustainability disclosure rules. Given Bangladesh’s deep reliance on the EU for apparel exports, she noted that meeting these requirements is unavoidable. She outlined major hurdles such as data verification, system interoperability, institutional coordination, and upfront investment needs. Ferdaus also referenced global examples from Vietnam, China, Japan, Korea, and India, where joint public–private investment has supported the development of effective traceability systems.
She stressed the importance of a National Traceability Strategy backed by sector-specific interventions, including a directory for the jhut (scrap) sector, strengthened institutional mechanisms, expanded data infrastructure, and green financing to support businesses adopting traceability tools.
Commerce Secretary Mahbubur Rahman underscored the need for a digital data-exchange platform, citing Germany’s model as an example, and called for support from development partners. He announced the initiation of drafting a National Traceability Strategy and proposed piloting sector-based traceability initiatives under the ministry’s leadership with GIZ’s technical expertise.
Representatives from BGMEA, BKMEA, and the leather sector highlighted progress in ongoing pilot projects but stressed the need to scale these efforts by incorporating additional data layers and expanding coverage to mid- and low-tier firms — including subcontracting units and animal-level traceability in tanneries — to meet upcoming global requirements.
BGMEA Director Sheikh HM Mustafiz noted that factories are under mounting pressure from brands, buyers, and private auditors requesting data across multiple platforms without any unified global standard. A harmonised national framework, he said, would reduce compliance burdens and associated costs.
Representing Germany, First Secretary Jannis Hussain pointed to two major bottlenecks: limited availability and production of reliable data, and the high costs of the digital infrastructure necessary to operate comprehensive traceability systems.
