Post-LDC strategy: Unlocking export potential of GI products through diversification
As Bangladesh nears LDC graduation, Geographical Indication products like Jamdani, Hilsa and Muslin could drive export diversification—if backed by stronger protection, producer ownership and smart branding
Bangladesh is now almost set to graduate from LDC in November 2026. While the private sector has sought additional time for preparation, the government remains firm in its stance, and might be viewing the chances of deferment as minimal.
Furthermore, without support from Bangladesh's bilateral partners, any extension of the LDC graduation timeline would yield limited benefits. In the meantime, Smooth Transition Strategy (STS) has been prepared and progress in that respect will be presented in a meeting by the UN in the month of November this year.
Among five important pillars of STS, export diversification is one of the important pillars. Bangladesh exports around 1,400–1,500 products; however, the country's export earnings remain heavily concentrated in a single product. This overdependence poses significant risks and challenges, which are likely to intensify in the post-LDC era.
In view of this, Geographical Indication (GI) registered products which will soon gather GI tags can be a potential area to explore. We are aware that GI certification is a sign used on products that originate from a specific place and have qualities or reputation linked to that origin. It links products to geographic origin, reflects unique qualities & reputation, and promotes rural development, cultural preservation and premium pricing. It also protects traditional knowledge, ensures quality, and boosts tourism and economic engagement.
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Under GI of Goods (Registration and Protection) Act, 2013, 60 GI-certified products have been registered in Bangladesh since 2016. Key products include: Jamdani, Muslin, Hilsa, Khirsapat mango etc. So far GI products are registered mostly by government organisations—more than 90% of GIs; thus sustainability and market impact is low, while the private sector's involvement is minimal and weak (only 10%).
This top-down approach raises concerns about long-term sustainability and market penetration. The low producer involvement and lack of strong associations risk the GIs' market impact. Limited producer ownership leads to a lack of genuine buy-in and a disconnect between the GI tag and real-world market benefits.
Among 60 registered GI products, 60–70% are agro-based. Direct Cash Incentive (CI) so far is allowed for these products. Phasing out of cash incentives has already been started, e.g., Agar Attar as one of the GI registered products was enjoying 20% cash incentives; after several phases of reduction, now the cash incentives is 8%.
The concerned players elaborated that unless they receive cash incentives, it will not be possible to increase the export of these products, despite the fact that the products have tremendous demand in the middle east countries. The potential export market of these products is about a billion dollars with about 100% value addition.
Govt should provide alternative support as per WTO rules, such as; low-cost financing, R&D and lab facilities, duty drawbacks, innovation, production-linked incentives (PLI), and affordable compliance options to address environmental, social and governance issues.
The current GI Act of Bangladesh lacks strong enforcement, and there is a need for specialised units within the DPDT, better inter-ministerial coordination, and an official advisory council. A comprehensive national survey of potential GIs has not been conducted. Producers face significant challenges, including a lack of access to proper labs and testing facilities for quality standardisation.
Bangladesh's key GI products have an export value of approximately $1.44 billion. There is a significant potential to double this value with enhanced commercialisation and enforcement efforts. But quality issues must be aligned as per buyers' needs.
In the global context, ASEAN countries have been protecting GIs for high value earnings. EU studies show GI products add 2.23 times better prices of comparable non-GI products; while agro-food products added 1.5 times value with 20–50% price premium. Then, why not Bangladesh add value to the GI products, create new employment and increase exports?
In Vietnam, they have 1,869 GI, in which 33% of the workforce are engaged, and GIs contribute 12% of the GDP. Japan has 169 GI registered products; around 47,000 people are engaged (as per statistics published in 2021), contributing $321 million to export, a key factor for rural economic development. China has 2523 GI (Sui generis) and 7835 (trademark) registered GI; around 20 million people are involved while GI accounts for nearly 60% of national exports.
Globally GIs are protected through two specific ways—dedicated legal frameworks for GI registration, use, and quality control, and second, enforcement. The EU model is based on PDO (Protected Designation of Origin) & PGI (Protected Geographical Indication). Countries are using several policies to protect their GIs, including Collective Marks and Certification Marks.
Bangladesh, India, Japan, Vietnam, Italy, Switzerland, and Türkiye follow the sui generis system while the United States, Australia, and New Zealand follow the trademark system. On the other hand, some countries—Brazil, Canada, China—are following a hybrid system. Collective trademarks can also protect GI when it is used by a group/association ( e.g; Napa Valley Vinters is a collective Mark).
In our country, GI functions are managed by the Department of Patents, Designs and Trademarks (DPDT) under the Ministry of Industries; however, a GI unit has not yet been established. The office is handled by limited staff.
Bangladesh GI Act, 2013 (Section 7) allows registration of homonymous GIs (same/similar names from different regions) but a bilateral agreement is necessary to enable mutual recognition, joint promotion, quality standards, and cross-border enforcement.
Bangladesh has been facing trans-border challenges such as conflicts over 8 GIs (Jamdani, Muslin, Tangail Saree, Sundarbans' Honey etc) with India. India registered the "Tangail Saree of Bengal" as a GI on 01 January 2024. Bangladesh responded on 06 February 2024, officially registered the saree on 25 April 2024, but by then India had already secured the claim, enabling it to market the product internationally.
India's application cited the migration of the Basak weaver family during partition but acknowledged Tangail, Bangladesh, as the product's place of origin, giving Bangladesh a valid legal ground to challenge the registration under WTO TRIPS provisions (Articles 22.2–22.4) that prohibit misleading indications of origin and unfair competition. Bangladesh exports a good amount of Tangail sarees to India.
Bangladesh should monitor foreign GI registrations, especially in countries with shared cultural resources, in accordance with the Lisbon Agreement and Geneva Act under WIPO for stronger international protection. The afore-mentioned case demonstrates that without proactive and strategic GI protection, Bangladesh's cultural assets can be claimed and commercialised by others, affecting both economic and heritage interests.
The current GI Act of Bangladesh lacks strong enforcement, and there is a need for specialised units within the DPDT, better inter-ministerial coordination, and an official advisory council. A comprehensive national survey of potential GIs has not been conducted. Producers face significant challenges, including a lack of access to proper labs and testing facilities for quality standardisation.
GI can contribute to enhancing export diversification if we can establish authenticity, brand value, and quality that will enable premium pricing & market differentiation. Moreover, increasing consumer trust (e.g., Jamdani, Ilish) will provide legal protection against misuse and counterfeit attempts in foreign markets.
Bangladesh needs to go for enacting a comprehensive national GI policy taking long-term goals and strategic priorities into account. The country can establish an official advisory council to guide GI initiatives. Bangladesh also needs to develop a national commercialisation and marketing strategy to promote GI products.
Regional GI fairs can be organised while official documentation to support local branding and sales is necessary. The country also needs to proactively engage in diplomatic efforts to negotiate specific GI protection agreements with key trading partners and neighbouring countries.
We may strategically select 5-10 GI products with high market potential for export, implement robust certification and traceability systems to meet international standards and conduct a national survey to identify and prioritise potential GI products across all sectors. Improved packaging with mandatory use of the official GI tag to establish it as a mark of authenticity is also important. Expanding funding opportunities for entrepreneurs is also of paramount importance.
GI products, protected under the TRIPS Agreement, offer strong export potential for Bangladesh in the post-LDC era. Ensuring their uniqueness, quality, standards, and traceability through robust R&D is essential.
Ferdaus Ara Begum is the CEO of BUILD—a public-private dialogue platform that 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.
