How MC14 could recast Bangladesh’s role in global commerce

The upcoming 14th Ministerial Conference (MC14) of the World Trade Organisation (WTO), to be held in Cameroon in March 2026, carries historic significance for Bangladesh. It will likely be the country's last appearance as a Least Developed Country (LDC) at a WTO Ministerial, marking the beginning of a new phase in its engagement with the global trading system — one defined by transition and change.

The Ministerial, which brings together all 166 WTO member countries, is expected to renew commitments to the Trade and Environment Sustainability Structured Discussions (TESSD), which connect trade with sustainability and environmental goals. Ahead of the event, multiple working groups are deliberating on a wide range of issues, including circularity in the electronics sector, trade in environmental goods and services, sustainable agriculture, and follow-up actions on longstanding WTO reforms, fisheries subsidies, e-commerce, investment facilitation, and LDC-specific concerns.

For Bangladesh, which has played an influential role among LDCs, MC14 marks a turning point. Despite its economic prominence, the country has traditionally adopted a defensive position in multilateral trade forums. However, the evolving global trade environment—characterised by protectionist policies, unilateral tariff measures, and growing emphasis on sustainability compliance—calls for a strategic shift towards proactive engagement.

The impact of US tariffs introduced on 1 January 2025 created global ripple effects and market-specific shocks. These tariffs, and subsequent retaliatory measures, triggered a broader slowdown in global demand, particularly in textiles and apparel.

Trade dynamics have shifted sharply towards protectionism. According to a UNDP-referenced study, the value of affected trade rose from $610 billion to over $2 trillion. Such measures, while sometimes exploiting WTO rules, have drawn criticism that has often gone unanswered.

Trade remedy measures—including anti-dumping, countervailing, and safeguard actions—have risen significantly amid this protectionist wave. The trade coverage of measures affecting global imports increased during the review period from October 2024 to May 2025, estimated at $2.4 trillion, or about 10% of the value of world merchandise imports.

This represents a 291% increase from $610.8 billion in the previous annual report. The trend towards anti-liberalisation is apparent, and the WTO's role is critical in this respect.

As has been raised in several forums, the multilateral trading system (MTS) has been under strain since the introduction of unilateral tariffs during the Trump administration, creating uncertainty for global commerce. Against this backdrop, MC14 may serve as a defining moment to reaffirm the WTO's central role in governing world trade.

Discussions are expected to emphasise WTO reform more heavily than the previously mandated issues that have remained unresolved since 2015.

In recent speeches, WTO Director-General Dr Ngozi Okonjo-Iweala—the first woman and the first African to lead the organisation—has underscored the need for fundamental reforms to restore trust in the institution. Describing herself as a "risk-taker", she highlighted the challenge of reviving the WTO at a time marked by deglobalisation, rising protectionism, and complex sustainability demands.

The reform agenda will be both ambitious and contentious. It encompasses negotiation reform, revisiting developing country status, strengthening plurilateral and multilateral instruments, and promoting "responsible consensus" in decision-making.

Monitoring and transparency will also need strengthening by enhancing compliance and notification mechanisms to ensure member accountability. Dispute settlement reform will be crucial for reviving the WTO's Appellate Body and restoring credibility to its enforcement system.

Updating trade rules and modernising agreements—such as the Agreement on Subsidies and Countervailing Measures (ASCM), Trade-Related Investment Measures (TRIMs), and Trade-Related Aspects of Intellectual Property Rights (TRIPS)—while incorporating new themes such as artificial intelligence, digital trade, services, and sustainability, will likely dominate the MC14 agenda.

Progress, however, will depend on the political will and flexibility of members. MC14 will bring a long list of issues, testing the WTO's capacity as a rules-based organisation that must balance the interests of both strong and weak economies.

As part of the TESSD process, several working groups have been exploring critical intersections between trade, environment, and development. Notably, the Environmental Goods and Services (EGS) group has focused on biotechnology and the role of trade in enabling bioeconomy transitions in agriculture.

The Trade-Related Climate Measures (TrCMs) group, facilitated by Switzerland, has examined subsidies, carbon pricing, and energy transition incentives. Of particular relevance to Bangladesh is the Working Group on Circularity in the Textile Sector, which highlights the global implications of textile reuse, recycling, and trade in used garments.

A Chatham House presentation at TESSD in March 2025 revealed that global trade in used textiles grew from $5 billion in 2000 to $9.5 billion in 2020. The trade in second-hand and upcycled clothing offers significant potential for circular economy development but also presents complex challenges.

While it reduces pressure on landfills and incineration facilities and creates employment in sorting, repairing, and recycling, it also provides affordable textile access in developing markets.

However, substantial challenges remain. Exporters often lack control over the end-use of shipped textiles, large import volumes can overwhelm municipal waste systems, and the declining quality of used garments alongside poor working conditions can undermine sustainability goals.

These concerns have spurred policy discussions on transboundary Extended Producer Responsibility (EPR) mechanisms for textile and plastic waste. They also include revisions to the Harmonised System (HS) codes to distinguish between used, unsold, and upcycled textiles—an issue expected to feature in the upcoming HS2028 revision.

Further areas of discussion include the inclusion of textile waste under the Basel Convention and global recognition of sorting and classification standards to improve traceability and facilitate sustainable trade.

The EU's Sustainable and Circular Textiles Strategy, while promoting environmental objectives, could significantly reshape global textile value chains. For supplier countries such as Bangladesh, the paradox lies in facing reduced access to recycled content from the EU while simultaneously being required to meet stringent eco-design and traceability standards to maintain market access.

The transition towards a circular textile economy is both a necessity and an opportunity. Bangladesh, as a major textile exporter, stands to gain by positioning itself as a leader in sustainable production and circular trade—leveraging MC14 to help shape a fairer and more resilient global trading framework.

The EU's circular economy has set various deadlines for implementing multiple policies. Bangladesh must better understand the existing gaps and, based on these, identify what is required to align with EU circular economy policies.

This will require extensive preparation, financial support, and clearly defined priorities. While some efforts are already underway on a piecemeal basis, a coordinated, time-bound approach is urgently needed.

As Bangladesh prepares for MC14, it must adopt a strategic, forward-looking stance that aligns trade policy with sustainability imperatives. Key actions include active participation in TESSD discussions and WTO reform dialogues to ensure that LDC and post-graduation interests are protected.

Regional and global coalition-building with other textile-exporting nations to advocate for fair and inclusive circular trade practices will also be vital.

Strengthening domestic readiness by promoting EPR schemes, eco-design standards, and sustainable production incentives will be crucial. A draft EPR policy has long awaited approval from the relevant ministry; the private sector must be more vocal in pushing for clear guidelines aligned with the needs of key markets, especially the EU.

Enhancing public–private collaboration to bridge trade policy, industrial development, and environmental objectives is another critical area. Bangladesh's preparations for LDC graduation have gained momentum following the finalisation of the Smooth Transition Strategy (STS).

However, as the private sector cannot play the main role within the WTO, deeper collaboration between the public and private sectors in detailed preparations for the upcoming Ministerial is essential.

MC14 will bring numerous issues to the table. As Bangladesh approaches graduation, its responsibilities as a developing country will expand significantly. A prioritised work plan is needed to meet these challenges and turn them into opportunities.

Bangladesh will play a dual role at the upcoming Ministerial—and it must play its cards wisely to strengthen its position on the international stage. Amid the ongoing political transition, it is vital that we do not lose sight of our preparations for MC14.

Ferdaus Ara Begum is the CEO at BUILD, a public private dialogue platform which works for private sector development

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.