UK market access to continue for BD

Bangladeshi exporters will continue to enjoy preferential access to the UK market after the country graduates from the least developed country category, with garment exporters set to retain ptheir current market access, according to the British High Commission in Dhaka.

Bangladesh currently enjoys tariff-free access for 99.8 percent of its goods exports to the UK under the Developing Countries Trading Scheme (DCTS).

Following LDC graduation, Bangladesh will receive a three-year transition period during which the existing trade preferences will remain unchanged.

After that period, the country will move directly to the Enhanced Preferences tier of the DCTS, under which 92 percent of goods will continue to qualify for duty-free access to the UK market.

The transition will not require fresh negotiations with the UK, providing greater certainty for Bangladeshi exporters as they prepare for the post-LDC trade environment.

The British High Commission conveyed the assurance in a letter sent to Commerce Secretary Md Ataur Rahman Khan on August 19, following a recent roundtable on the DCTS jointly organised by the high commission and the Export Promotion Bureau.

The development is particularly important for Bangladesh’s garment sector, the country’s largest export-earning industry.

According to the British High Commission, market access for key apparel products, including knitwear and woven garments, will remain unchanged when Bangladesh moves to the Enhanced Preferences tier.

Updated UK Rules of Origin will also allow garment exporters to continue benefiting from the existing arrangements, including exemption from the double-transformation requirement.

The revised rules are expected to give exporters greater flexibility in sourcing raw materials and inputs from a wider range of countries while still qualifying for preferential access to the UK market.

The British High Commission said it would continue working with the Bangladesh government, trade bodies and exporters to improve awareness and utilisation of the DCTS. A series of workshops for exporters and other trade stakeholders will also be organised jointly with the EPB in the coming months.

The UK reaffirmed its commitment to strengthening trade and investment ties with Bangladesh and supporting the country’s economic growth after LDC graduation.

The assurance comes as Bangladeshi exporters and policymakers prepare for changes in trade preferences and seek to preserve access to key international markets.