Canada extends duty-free access facility for Bangladesh till 2034
Bangladesh will continue duty-free access facility to Canada market till 2034 as per a bill passed in Canadian parliament in last June.
This decision by the Canadian government entails an extension of duty-free market privileges to all developing nations, a move that will particularly benefit Bangladesh as it is poised to graduate from its Least Developed Country (LDC) status by 2026.
Under the provisions of the General Preferential Tariff (GPT) scheme, this market access encompasses not only relaxed rules of origin for apparel items but also extends duty-free access to a range of other products.
An innovative aspect of the new program involves linking this market access benefit to labor and environmental compliance within the industries. This approach emphasizes the importance of sustainability and responsible business practices in international trade.
According to data provided by the Bangladesh's Export Promotion Bureau (EPB), Canada ranked as Bangladesh's 11th largest export partner, with a noteworthy export value of 1.72 billion US dollar during the fiscal year 2023. Notably, Canada stands as one of the primary markets for Bangladeshi apparel.
The Ready-Made Garments (RMG) sector of Bangladesh experienced remarkable growth in exports to Canada, reaching $1.55 billion during the fiscal year 2023. This figure represents a substantial increase from the $1.33 billion recorded in the previous fiscal year, signifying a robust growth rate of 16.55%.
This extended duty-free access to the Canadian market not only ensures a stable trade relationship between Canada and Bangladesh but also encourages sustainable and responsible business practices, which are increasingly becoming critical aspects of international trade agreements.
Bangladesh's continuous growth in exports to Canada further solidifies its position as a key player in the global apparel industry.
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