Bangladesh’s garment exports to the United Kingdom (UK) are poised for significant growth, thanks to the British Government’s commitment to extending duty-free benefits to developing nations, even after they transition from their least developed country (LDC) status.
This is as per reports, according to which, the United Nations Committee for Development Policy, Bangladesh is slated to graduate from LDC status to that of a developing nation in November 2026, which would result in the loss of its preferential trade benefits, which further went on to add while the European Union (EU) will continue to offer LDC trade benefits to Bangladesh for an additional three years, until 2029, the UK has introduced its own Generalized System of Preferences (GSP), known as the Developing Countries Trading Scheme (DCTS).
This scheme grants developing nations duty-free access to UK markets.
The DCTS replaces the EU’s GSP scheme, through which Bangladesh previously enjoyed duty-free access to the UK, a change implemented as part of the Brexit process, leading to the development of new trade policies by the British government.
Post-Brexit, Bangladesh’s apparel industry has made significant inroads into the UK market due to its competitive pricing. For example, in the last fiscal year of 2022-23, Bangladesh exported clothing worth US $ 5.02 billion to the UK, up from US $ 4.50 billion in FY2021-22, as reported by the Export Promotion Bureau (EPB).
