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Driving growth together: Navigating UK-Bangladesh trade opportunities
Exploring new pathways to strengthen dynamic trade partnerships between UK and Bangladesh through innovation, diversification, and resilient economic strategies.
HSBC Bangladesh has commissioned Ernst & Young LLP Bangladesh and Quay Asia to undertake a comprehensive a study on the UK-Bangladesh corridor, titled “Legacy and the future: Navigating New Opportunities for UK and Bangladesh” which explores the evolving trade relationship between the UK and Bangladesh. This study is part of HSBC’s commitment to opening up a world of opportunities, and it highlights pathways to strengthen bilateral trade, addressing policy challenges and fostering economic growth as Bangladesh transitions from its Least Developed Country (LDC) status in the coming years.
As one of the UK’s largest trading partners in South Asia, Bangladesh has consistently maintained a trade surplus with the UK, which is the country’s third-largest export market. As Bangladesh prepares for LDC graduation by 2026, challenges such as tariff structures, intellectual property protections, and logistical inefficiencies need to be addressed to maintain its competitive edge.
Bangladesh has set on a journey of reforms to create a congenial investment environment. Our Government will always be supportive of responsible businesses looking to come in or export out of Bangladesh. UK is a longstanding friend of Bangladesh. I thank HSBC for taking the initiative to explore the opportunities that exist for the two nations.
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The report emphasizes the importance of diversifying exports beyond traditional ready-made garments (RMG) to emerging sectors such as pharmaceuticals, leather goods, jute products, and agro-processed goods. These sectors represent significant opportunities to expand Bangladesh’s economic footprint globally, particularly in the UK. The study also recommends leveraging the UK’s Developing Countries Trading Scheme (DCTS) to retain preferential access to UK markets post-LDC graduation.
As Bangladesh approaches its transition from Least Developed Country (LDC) status in the coming years, it will need to seize the strategic opportunities ahead. The UK’s Developing Countries Trading Scheme (DCTS) will help sustain access to the UK market while promoting the development of higher-value sectors like electronics and electricals, pharmaceuticals, leather goods, and agro-processing. By working together, I am confident we can continue driving economic growth, fostering innovation, and building a resilient trade partnership that benefits both the UK and Bangladesh.
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The report also outlines actionable steps to enhance infrastructure, improve digital systems, and align regulatory frameworks. Investments in modernizing ports and logistics are critical to bolstering Bangladesh’s role in global supply chains. Additionally, fostering collaboration between public and private sectors will be key to accelerating progress.
HSBC has always been at the forefront of enabling trade partnerships that drive sustainable growth. As we navigate these opportunities together, we remain committed to supporting businesses and policymakers to unlock Bangladesh’s full trade potential with the UK.
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The findings of this study offer a clear roadmap for Bangladesh and the UK to enhance trade ties, paving the way for greater economic resilience and mutual prosperity. By working together, businesses, investors, and policymakers can create a future rooted in growth, innovation, and shared success.
Download the full report
Explore more insights by downloading the report, “Navigating New Opportunities: Analysis of the UK-Bangladesh Trade Dynamics,” here.
