Bangladesh will get duty-free facility until 2034 in the export of clothing to Canada
If everything goes according to plan, Bangladesh will move from the list of least developed countries (LDC) to the developing countries list in 2026. Bangladesh will continue to have access to Canada’s duty-free markets. The duty-free market facility in one of the major markets will ensure that entrepreneurs can at least breathe till 2034.
The General Preferential Tariff (GPT) programed of the Canadian government has opted to offer developing nations duty-free market access. Along with easing the regulations governing the production of clothing, this plan will also allow other commodities duty-free entry into the nation. The new plan also suggests expanding these market access facilities in accordance with how well the company complies with labor and environmental laws.
The GPT plan has been extended until the end of 2034, according to Farooq Hasan, president of BGMEA, the association of owners in the ready-made clothing industry, who spoke on Sunday.
According to research, Bangladesh has had complete duty- and quota-free access to Canada since 2003 as a result of the Listed Development Country Tariff (LDCT) programme. The LDCT plan is covered by GPT. Each decade, the GPT system is renewed. The scheme’s current iteration will finish at the end of 2024.
In the previous fiscal year 2022–2023, Canada ranked as the 11th most popular country for Bangladeshi exports, according to data from the Export Promotion Bureau (EPB). 1.72 billion dollars, or 3.10 percent of total exports, were sent to this market. The nation exported goods worth 152 million dollars last year. That indicates that during the most recent fiscal year, exports rose by 13%.
One of the main markets for clothing from Bangladesh is Canada. The export of clothing from Bangladesh to Canada in the most recent fiscal year 2022–2023 was worth 154 million dollars. This shipment represents a 16.5% increase over the prior year. In the most recent fiscal year 2021–2022, the market shipped ready-made clothing worth $1.33 billion.
According to Farooq Hasan, Canada only imports 13.95 percent of the entire amount of manufactured clothing from Bangladesh. Bangladesh therefore has greater potential in this market. To further enhance exports to the nation with the GPT Plus facility, we should take appropriate measures.
