Bangladesh faces the risk of lagging behind other nations and global economies if it does not swiftly introduce significant changes in tariffs and trade facilitation within the next five years, as per a report. The chairman of the Policy Research Institute of Bangladesh, Zaidi Sattar, emphasized the critical need for urgent reforms, highlighting that the country has not undertaken substantial trade policy changes for about 16 years. At an event commemorating International Customs Day 2026, Sattar expressed concerns over the accumulating backlog of reform tasks, which is undermining Bangladesh’s position in the global value chain.
Sattar pointed out that Bangladesh’s current tariff system is notably high and complex compared to international standards, which hampers its competitiveness globally. He stressed the necessity for a radical overhaul of the trade policy, particularly in areas like tariff rationalization, modernization, and trade facilitation, to reduce compliance costs. Without these essential changes within the next five years, Sattar cautioned that Bangladesh’s economy could fall behind numerous other competitive economies.
In an optimistic outlook, Sattar envisioned Bangladesh transitioning towards a modern customs administration that prioritizes trade facilitation over revenue collection, given that trade taxes presently contribute around 2.5% to the GDP. He proposed that trade taxes should decrease to a maximum of 1% by 2030 to enhance economic growth and competitiveness. Commerce Secretary Mahbubur Rahman highlighted the persistent presence of non-tariff barriers hindering trade and urged the National Board of Revenue (NBR) to streamline the trade regime for smoother operations. European Commission officials, during a recent visit, raised various concerns related to customs procedures in Bangladesh, emphasizing the need for simplification.
As Bangladesh prepares to graduate from the UN’s Least Developed Country (LDC) category, the urgency of trade facilitation intensifies to maintain preferential market access through agreements with key partners, Rahman emphasized.
