The government has initiated devising a work plan to sustain the country's generalised system of preferences or GSP facility in EU markets after its graduation from least developed country status, officials said.
As part of the move, the foreign ministry had started the process of forming a high-powered inter-ministerial 'task team' to prepare planned "outreach activities" to peruse the country's lobbying with EU counterparts, they added.
The ministry had already decided to constitute the team with representatives from commerce and labour ministries and economic relations division (ERD).
It recently wrote to these agencies to nominate their representatives for the same.
The proposed team would mainly maintain negotiations and persuasion with 27 member countries of the EU, EU commission, parliament and EU trade bodies so that Bangladesh can continue the existing GSP facilities in EU markets after its graduation.
The move had been initiated amid doubts over the continuation of zero-tariff benefit on exports of Bangladeshi products in EU markets after the country's graduation from LDC.
It is not certain whether Bangladeshi products would be getting existing GSP facility in EU markets beyond 2029 after obtaining the same for three years since 2026.
As a LDC, Bangladesh is a major beneficiary of the EU's external trade policy meant for the impoverished nations.
Currently, Bangladesh enjoys duty-free facility in exporting goods to the EU under its EBA (everything but arms) scheme. About 61 per cent of Bangladeshi goods are exported to the EU markets.
The Europe bloc is the largest destination of Bangladesh's garment exports, with shipments amounting to US$18.69 billion during the fiscal year 2019-20.
The new GSP regulation would be effective from January, 2024. The EU Commission had already started reviewing this issue largely. The EU had revised the existing GSP in 2012.
The GSP facility was introduced in 1971. The rationale of it is to offer easier access to the EU market in order to promote sustainable economic, social and environment development in developing countries.
Bangladesh is set to graduate from the LDC group by 2024. Currently, it has been given a two-year time up to 2026 to prepare for the transition to the status of a developing nation. Generally, countries get three years for the transition period in this process.
Due to the impact of COVID-19 pandemic on the country's economy, five-year time has been given to Bangladesh regarding the issue. After it graduates from the LDC club, it will get trade benefit from the EU economic bloc up to 2029.
The Committee for Development Policy (CDP) of United Nations in February last recommended graduation of Bangladesh from the group of LDC on fulfilling three criteria--per capita income, a human assets index and an economic vulnerability index.
A senior official at the ministry of commerce told the FE that Bangladesh is now expecting GSP Plus tariff preference from the EU after the country's graduation.
"But we have to ensure full implementation of labour rights and international conventions to be eligible for EU GSP plus scheme," he added.
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