UK's Developing Countries Trading Scheme key for post-LDC Bangladesh to retain access to market: Study

Bangladesh should leverage the UK's Developing Countries Trading Scheme (DCTS) to retain preferential access to the UK market post-LDC graduation, according to a recent study on the UK-Bangladesh market.

The Scheme is essential for deeper integration into global supply chains, said the study titled "Navigating New Opportunities: Analysis of the UK–Bangladesh Trade Dynamics", published by HSBC Bangladesh. 

It also recommends diversifying Bangladesh's export base beyond RMG, to include pharmaceuticals, leather goods, jute products, and agro–processed goods. 

The report also underscores the necessity for infrastructural development in ports, logistics, and digital systems to facilitate smoother bilateral trade. 

Aligning regulatory frameworks and fostering skill development through partnerships is also mentioned as vital to sustaining this synergistic partnership.  

It said the UK stands as one of Bangladesh's most significant trade and development partners. More than 240 UK businesses hold key investments in Bangladesh ranging from textiles and banking, to education. 

The Hongkong and Shanghai Banking Corporation (HSBC) in Bangladesh recently published the study, commissioned by HSBC and conducted by Ernst & Young LLP Bangladesh and Quay Asia.

Initiated in November 2023, the study highlights potential areas of cooperation, aiming to improve trade and investment between Bangladesh and the United Kingdom (UK). 

Sarah Cooke, British high commissioner to Bangladesh, at the launching of the publication, said Bangladesh will need to seize the strategic opportunities ahead  as the country approaches its transition from LDC status in the coming years. 

"The UK's DCTS will help sustain access to the UK market while promoting the development of higher-value sectors like electronics and electrical, pharmaceuticals, leather goods, and agro-processing," she said.

Lutfey Siddiqi, special envoy on international affairs to the chief adviser, said, "Our government will always be supportive of responsible businesses looking to come in or export out of Bangladesh. The UK is a longstanding friend of Bangladesh. I thank HSBC for taking the initiative to explore the opportunities that exist for the two nations"

Md Mahbub Ur Rahman, CEO, HSBC Bangladesh, spoke on the importance of UK-Bangladesh business ties and highlighted HSBC's role in facilitating this trade relationship. 

He added, "In today's globalised environment, emphasising on specific and targeted endeavours can pave the way towards a successful and robust partnership in these strategic corridors."

During the event, other guests also spoke at the panel discussion and highlighted Bangladesh's opportunities led by its large consumer market and tech-savvy young population, historic and growing trade investment ties with the UK and the potential diversified investment sectors including manufacturing, education, pharmaceuticals and technology. 

The panel also included how everyone can take part to create an investor friendly environment and boost the economy.