Bangladesh/Canada Agreement: A Tariff Alliance for Textile Future
In the face of global dynamics, Canada confirms its support for emerging economies, including Bangladesh, by expanding its preferential market access.
Since 2003, under the specific preferential schemeGeneral Preferential Tariff (GPT)Bangladesh is benefiting from theexemption from customs duties on its exports of apparel to Canada. Today, Ottawa is strengthening this partnership by extending this advantage until 2034. This strategic decision comes as Bangladesh moves out of the status of least developed countries in 2026under the TPG agreement.
For the Bangladeshi ready-to-wear sector, which recorded $1.55 billion in exports to Canada in fiscal year 2022-23, the expansion promises sustained growth. In this context, Canada also unveils its Programme « GPT Plus »encouraging respect for labour rights and environmental standards, aligned with the benefits of the Free Trade Agreement (FTA). While Bangladesh's transition to developing country status could pose an economic challenge, this Canadian support is expected to be a lifeline, particularly for its textile sector.
Canada will thus become the third country, after the United Kingdom and Australia, where Bangladesh will be able to retain preferential trade treatment after 2026, according to Bangladeshi media.
However, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) believes that price re-evaluation and sound national competition are necessary to sustain this growth.
Source(s): fiber2fashion| Bangladeshpost.net
Editor(s): F. SUNDAC