Address policy challenges for more UK trade: HSBC study

Bangladesh faces challenges related to regulatory and policy environments, including complex tariffs, intellectual property protection and inadequate logistics infrastructure, which are bottlenecks to diversifying exports to the UK, according to an HSBC study.

Addressing these issues through policy reforms and capacity building is essential for improving trade efficiency and competitiveness, it said.

The study, styled "Navigating New Opportunities for UK and Bangladesh", was made public by The Hongkong and Shanghai Banking Corporation Limited (HSBC) Bangladesh through a programme at The Westin Dhaka on Wednesday.

Bangladesh is among the UK's largest trading partners in South Asia, and the UK is a major export destination for Bangladesh, said the associated report.

Bangladesh consistently maintains a trade surplus with the UK, with the UK being its third-largest export market in fiscal year (FY) 2022-23.

The growth rate for exports from Bangladesh to the UK stood at 6.23 percent from FY19 to FY23, it said.

According to the report, the UK provides duty-free export facilities to Bangladesh under the least developed country (LDC) category of the United Nations.

Initiated in November 2023, the study explored strategies to enhance the bilateral trade, focusing on optimising existing agreements, addressing challenges, and identifying new opportunities to strengthen economic ties as Bangladesh transitions from LDC status by 2026.

More than 240 UK businesses, ranging from textiles and banking to education, hold key investments in Bangladesh, the report said.

The study recommended diversifying Bangladesh's exports beyond garments to include pharmaceuticals, leather goods, jute products, and agro–processed goods.

The UK's Developing Countries Trading Scheme (DCTS) is essential for deeper integration with global supply chains, it said.

Besides, this would ensure that Bangladesh retains preferential access to the UK market post-LDC graduation, it added.

The report also underscored the necessity for infrastructural development in ports, logistics and digital systems.

Aligning regulatory frameworks and fostering skill development through partnerships are also vital, it said.

The UK has opportunities to increase exports to Bangladesh in sectors like machinery and equipment, IT services, renewable energy, healthcare and higher education.

Lutfey Siddiqi, special envoy on international affairs to the chief adviser of the interim government, Sarah Cooke, British high commissioner to Bangladesh, and Dan Pasha, director of trade and investment at the British High Commission, were present.

Shamima Akhter, director of corporate affairs, partnerships and communications at Unilever Bangladesh, Naushad Ekramullah, managing director of Ernst and Young Bangladesh, Shaila Rahman, managing director of Quay Asia, Stuart Rogers, regional head of commercial banking (international markets) for Asia Pacific at HSBC, and Md Mahbub Ur Rahman, chief executive officer of HSBC Bangladesh, were also present.