Market Access Issues: EU-Bangladesh Trade Regime

This case study examines market access barriers for small and medium-sized enterprises (SMEs) in Bangladesh across four key export industries: leather and leather goods, knitwear, pharmaceuticals, and shrimp processing, specifically focusing on trade with the European Union (EU). While the EU's 'Everything But Arms' (EBA) policy has removed most tariffs and quotas, the study finds that non-tariff barriers (NTBs)—particularly technical regulations, standards, and certification requirements—remain significant obstacles to trade expansion.

• Technical Barriers to Trade (TBT), categorized as Type II barriers, are the most significant obstacles for SMEs in Bangladesh across the analyzed sectors. These include technical regulations, standards, testing, and certification arrangements.
• In the leather and leather goods industry, Type II barriers are highly dominant. Specific issues include the high cost of AZO-free certification and the rejection of containers for failing to meet chemical usage standards, with estimated costs of US$3,000 per 20 ft container.
• The knitwear industry is heavily impacted by Type I barriers, particularly customs valuation and formalities. Delays at Bangladeshi ports of entry for raw materials imported from China and India often extend delivery times from 5-7 days to 20-22 days, threatening contract fulfillment.
• The shrimp processing industry faces severe Type II barriers related to Sanitary and Phytosanitary (SPS) measures and HACCP compliance. Investment to upgrade plants for HACCP compliance averages US$227,450.97 per plant, and a single 40 ft container rejection can cost approximately 1 million taka (US$15,197.568).
• Pharmaceutical exporters are primarily hindered by strict rules of origin (Type I) and high certification costs (Type II). Product registration fees in importing countries are reported to range from US$10,000 to US$40,000.
• Type III barriers, specifically requirements for marking, labeling, and packaging, are significant for the leather and shrimp industries but were not reported as existing in the knitwear or pharmaceutical sectors.
• Type IV barriers, which include import charges such as port taxes and safeguard measures, were not found to exist in any of the four analyzed industries, likely due to the EU's Everything But Arms (EBA) initiative.
• The study identifies a critical need for the WTO and the Bangladeshi government to address rules of origin and customs formalities to help SMEs. For the shrimp industry, relaxing rules of origin to allow raw material imports from India and Thailand could increase exports to the EU.

APA

HAQUE, A. E., KARIM, A., & ABDALLAH, W. (n.d.). Market Access Issues: EU-Bangladesh Trade Regime. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/tkn_market_bangladesh.pdf

Chicago

HAQUE, A.K. Enamul, Azreen KARIM, and Wahid ABDALLAH. Market Access Issues: EU-Bangladesh Trade Regime. International Institute for Sustainable Development, n.d. https://www.iisd.org/system/files/publications/tkn_market_bangladesh.pdf.

Wikipedia

{{cite report |last1=HAQUE |first1=A.K. Enamul |last2=KARIM |first2=Azreen |last3=ABDALLAH |first3=Wahid |title=Market Access Issues: EU-Bangladesh Trade Regime |publisher=International Institute for Sustainable Development |url=https://www.iisd.org/system/files/publications/tkn_market_bangladesh.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{haquendmarket, author = {HAQUE, A.K. Enamul and KARIM, Azreen and ABDALLAH, Wahid}, title = {{Market Access Issues: EU-Bangladesh Trade Regime}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/tkn_market_bangladesh.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }