Fashion
Major challenges ahead of Bangladesh’s LDC graduation: ICCB editorial
Upon graduation, Bangladesh will gradually lose the duty-free and quota-free market access it currently enjoys in major destinations like the European Union, Canada and Australia.
Though Bangladesh has met all three essential UN criteria for graduation from the LDC status, maintaining economic momentum and competitiveness after that needs significant internal restructuring, the ICCB has said.
An editorial in its latest newsletter said unless productivity improves and the country diversifies into new markets and higher-value apparel categories, the RMG industry’s edge may weaken.
For the readymade garment (RMG) industry—which accounts for over 80 per cent of export earnings—tariffs of 10-12 per cent could sharply reduce competitiveness, an editorial in the July-September 2025 issue of ICCB News Bulletin said.
Unless productivity improves and the country diversifies into new markets and higher-value apparel categories, its edge may weaken, it noted.
“Graduation will end concessional loans and grants, forcing Bangladesh to rely on costly commercial borrowing. With over $100 billion in external debt, rising global interest rates could strain repayment capacity. Stronger debt management, higher reserves, and export diversification are crucial to maintain fiscal discipline and ensure long-term macroeconomic stability,” said the editorial.
Global trade trends compound this challenge. Rising protectionism, complex supply-chain standards and non-tariff barriers such as carbon border taxes and due-diligence laws threaten traditional export models. As the global apparel market increasingly prioritises sustainability, traceability and labour compliance, Bangladesh must reposition itself as a responsible and innovative manufacturing hub, suggests the editorial.
At the same time, weaknesses in education, healthcare, and social protection must be addressed to ensure inclusive growth. A post-LDC Bangladesh cannot afford to leave its human capital behind. Skill development, vocational training, and greater female participation in the workforce will determine how equitably prosperity is shared.
Graduation also presents an opportunity to diversify beyond garments into IT, pharmaceuticals, leather agro-processing, service sector and shipbuilding—sectors critical for long-term competitiveness, it observed.
The privileges of the past will fade and the discipline of the future will demand more reform, more innovation and greater resilience, the editorial added.
Fibre2Fashion News Desk (DS)
Fashion
EU gains meet a harsh reality in India: War, rupee, energy shock
India’s textile outlook is turning structurally complex.
The EU pact targets ~99.5 per cent trade coverage with phased duty relief, while rupee weakness supports exports.
However, crude volatility, >80 per cent import energy dependence, polyester cost inflation and US market softness (≈28 per cent share) are fragmenting performance, reinforcing a shift towards cotton-led, EU-focused exporters.
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Fashion
Hainan free trade port crosses $11.6 bn trade in 100 days
Official data showed that 186 transactions were completed under the zero-tariff policy, covering goods worth nearly ¥1.7 billion (~$236 million), reflecting a 1.46-fold rise compared to the previous year. The policy also resulted in duty exemptions totalling ¥271 million (~$37.6 million).
The figures were released at a press conference held ahead of the 100-day milestone of the policy’s implementation.
Hainan Free Trade Port recorded trade exceeding ¥80 billion (~$11.6 billion) in its first 100 days of special customs operations, up 32.9 per cent YoY.
A total of 186 zero-tariff transactions were completed, covering goods worth ¥1.7 billion (~$236 million), while duties worth ¥271 million (~$37.6 million) were exempted, reflecting strong early momentum.
Launched on December 18, the island-wide special customs operations aim to facilitate smoother entry of overseas goods, expand the scope of zero-tariff items, and create a more business-friendly trade environment.
Positioned as the world’s largest free trade port by area, Hainan FTP is expected to play a strategic role in advancing China’s trade liberalisation and economic openness.
Fibre2Fashion News Desk (JP)
Fashion
China rolls out tariff cuts on Congo imports from April 1
The measure implements tariff reduction commitments made under the ‘Early Harvest Arrangement of the Agreement on Economic Partnership for Shared Development’ between the two countries.
China will implement preferential tariff rates on selected imports from the Republic of the Congo starting April 1 under the Early Harvest Arrangement of their economic partnership agreement.
The move announced by the Customs Tariff Commission, is aimed at fulfilling tariff reduction commitments, enhancing bilateral trade cooperation and advancing long-term economic ties between the two countries.
The commission said the move is in line with China’s tariff law and reflects the country’s continued efforts to expand opening-up and strengthen trade ties with African partners.
Officials stated that the preferential tariff treatment will help deepen bilateral economic and trade cooperation and support the development of a higher-level community with a shared future between China and the Republic of the Congo.
The Early Harvest Arrangement, signed in November 2025, marked the first such agreement of its kind between China and an African country, paving the way for broader market access and phased tariff reductions.
Fibre2Fashion News Desk (JP)
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