UK market to remain open for Bangladesh in post-LDC era: British High Commission

The UK market will remain open to Bangladeshi exporters after the country's graduation from the least developed country (LDC) category, with garment exporters set to retain their existing market access, according to the British High Commission in Dhaka.

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

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Following Bangladesh's LDC graduation, there will be a three-year transition period during which the existing market access will remain unchanged.

After the transition, Bangladesh will move directly into 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 move will not require a fresh renegotiation with the UK, providing exporters with greater certainty as they plan their future business strategies.

The assurance came following a recent roundtable on the DCTS, co-hosted by the British High Commission and the Export Promotion Bureau (EPB). The British High Commission in Dhaka said this in a letter sent to Commerce Secretary Md. Ataur Rahman Khan on August 19.

The development is particularly significant for Bangladesh's apparel industry, the country's largest export earner.

According to the British High Commission, market access for garments such as knitwear and woven garments will remain unchanged when Bangladesh moves to Enhanced Preferences.

The UK's updated Rules of Origin will also allow garment exporters to continue operating under the same rules they currently benefit from, including no requirement for double transformation.

The revised rules will additionally provide exporters with greater flexibility to source inputs from a wider range of countries while still qualifying for preferential access to the UK market.

The British High Commission also said it would continue working with the Bangladesh government, business associations and exporters to raise awareness of the DCTS and improve its utilisation.

As part of the initiative, the high commission and the EPB will organise a series of workshops on the DCTS for exporters and other trade stakeholders over the coming months.

The UK said it remained committed to deepening its trade and investment partnership with Bangladesh and supporting the country's continued economic growth and development.

For Bangladesh, the assurance comes at a crucial time as exporters and policymakers prepare for the changes associated with LDC graduation and seek to preserve preferential access in key export markets.