RMG exports to non-traditional markets, particularly India and Japan, are expected to face significant challenges due to high import duties following its graduation from least developed country (LDC) status in November 2026. Industry experts emphasized the urgent need for a post-graduation strategy, including negotiating bilateral agreements and seeking an extension of the current preferential trade regime to mitigate the impact of high tariffs.
A study by RAPID indicates that Bangladeshi RMG exports could face duties as high as 20% in India and 9% in Japan, both growing markets for the sector. Additionally, export duties of 6.5% in China and 5–6% in Australia are anticipated. These increased costs could initially harm business growth and reduce competitiveness, as duty-free access has been a key factor driving buyer interest in Bangladeshi products.
Experts, including DBL Group’s M A Rahim Feroz and BGMEA’s Asif Ashraf, called for strengthening backward linkages, requesting a delayed graduation timeline, and implementing a smooth transition strategy to adapt to non-preferential trade conditions. RAPID’s Dr. M A Razzaque highlighted the need for clear timelines to help exporters adjust to new market dynamics and emphasized domestic reforms as crucial for post-graduation success.
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