Bangladesh and the UK share a long-standing and promising trade relationship. In the 12 months ending March 2026, bilateral trade in goods and services between the two countries reached £4.5 billion. Of this, UK imports from Bangladesh accounted for £3.8 billion.
However, Bangladesh's exports remain heavily concentrated in ready-made garments. As the country looks ahead, the focus should be on diversifying both goods and services exports, strengthening local production and capabilities, and creating stronger links between trade, investment and technology.
I believe: The FMCG sector can play an important role in this diversification. The sector has strong connections with local manufacturing, raw material and packaging suppliers, technology, logistics and extensive distribution networks. Long-term investors such as Unilever, along with other UK-based companies, can help strengthen local suppliers and manufacturing capabilities by sharing international expertise, technology and global standards. This can create greater opportunities for Bangladeshi businesses to become part of regional and global value chains.
Our experience shows that Bangladesh has strong potential to build competitive local manufacturing and efficient supply chains. At Unilever Bangladesh, we continue to invest in local manufacturing, supplier development and capability building alongside growing our business. Today, more than 96% of our products are manufactured in Bangladesh.
As Bangladesh transitions forward from the Least Developed Country (LDC) status, the country will enter a new phase of global competition. Success will increasingly depend on productivity, innovation, quality, reliable supply and a business environment that supports long-term investment.
For the UK, it is important to note that Bangladesh's trade preferences will not disappear immediately after LDC graduation. If Bangladesh graduates in 2026, it will continue to receive the highest level of benefits under the UK's Developing Countries Trading Scheme (DCTS) until 2029. After that, Bangladesh will remain eligible for duty-free access across 92% of product categories under the Enhanced Preferences arrangement.
For UK-based businesses, this transition presents both challenges and opportunities. Bangladesh's growing consumer market and young population remain major strengths. At the same time, businesses continue to face practical challenges, including access to foreign exchange, the cost of imported raw materials and equipment, energy and transport infrastructure, lengthy customs procedures, changes in tax policies and co-ordination challenges between different government agencies.
I believe world-class manufacturing is possible in Bangladesh, and Unilever's operations demonstrate that potential. However, manufacturing capacity alone is not enough to become part of global value chains. Local factories and suppliers must also deliver consistent quality, competitive costs, reliable and timely delivery, traceability, and strong environmental and social standards.
Capabilities also need to be strengthened across the wider supply ecosystem, including raw materials, packaging, engineering, transport and digital services. Multinational companies can support this progress through technical expertise, capability development and collaborative innovation.
Making supply chains more digital and transparent, improving the efficiency of ports and customs, and ensuring reliable access to energy will also be essential.
The opportunity to participate in global value chains is not limited to exporting finished products. Bangladesh also has strong potential in areas such as packaging design, software, data analytics, research and supply chain management. Where local businesses can compete on quality, cost and reliability, they can grow into regional and global suppliers.
Achieving this will require coordinated action from government, multinational companies, local businesses, financial institutions and educational institutions.
I see particular opportunities in three areas. First, green industrialisation, including renewable energy, energy-efficient technologies and sustainable packaging. Second, software, fintech, digital payments and other knowledge-based services. Third, pharmaceuticals, agro-processing, advanced manufacturing, logistics, higher education and skills development.
To realise these opportunities, a predictable business environment will be essential. A clear three- to five-year roadmap for tax and customs policies would help businesses and investors plan with greater confidence for the long term.
At the same time, processes such as business registration, licensing, customs, tax audits and the legal repatriation of funds should become more digital, transparent and time-bound. Reliable energy, efficient ports and logistics, as well as a rational tariff structure for importing raw materials and technology, will also be important.
Most importantly, regular and evidence-based dialogue between the government and private sector must continue to strengthen. With the right policies, long-term investment and stronger local capabilities, Bangladesh and the UK can build a more diverse, resilient and future-ready trade partnership.
Frequently asked questions
Why does Bangladesh need to diversify its exports beyond ready-made garments?
Bangladesh's exports remain heavily concentrated in ready-made garments, which leaves the economy exposed as global competition intensifies. Bilateral trade in goods and services with the UK reached £4.5 billion in the 12 months ending March 2026, with UK imports from Bangladesh accounting for £3.8 billion. Broadening into other goods and services, strengthening local production and capabilities, and creating stronger links between trade, investment and technology would make that relationship more resilient and future-ready.
What happens to Bangladesh's trade preferences with the UK after LDC graduation?
Preferences will not disappear immediately. If Bangladesh graduates from Least Developed Country status in 2026, it will continue to receive the highest level of benefits under the UK's Developing Countries Trading Scheme (DCTS) until 2029. After that, Bangladesh remains eligible for duty-free access across 92% of product categories under the Enhanced Preferences arrangement.
How can the FMCG sector support trade diversification between Bangladesh and the UK?
FMCG has deep connections across local manufacturing, raw material and packaging suppliers, technology, logistics and extensive distribution networks. Long-term investors such as Unilever, alongside other UK-based companies, can strengthen local suppliers and manufacturing capabilities by sharing international expertise, technology and global standards, helping Bangladeshi businesses join regional and global value chains. At Unilever Bangladesh, more than 96% of products are manufactured locally.
What challenges do businesses face when investing or operating in Bangladesh?
Practical barriers include access to foreign exchange, the cost of imported raw materials and equipment, energy and transport infrastructure, lengthy customs procedures, changes in tax policies and co-ordination between government agencies. A predictable business environment would help: a clear three- to five-year roadmap for tax and customs policy, and more digital, transparent and time-bound processes for registration, licensing, customs, tax audits and the legal repatriation of funds.
Which sectors offer the strongest growth opportunities for Bangladesh?
Three areas stand out. First, green industrialisation, including renewable energy, energy-efficient technologies and sustainable packaging. Second, software, fintech, digital payments and other knowledge-based services. Third, pharmaceuticals, agro-processing, advanced manufacturing, logistics, higher education and skills development. Opportunity is not limited to finished products: packaging design, data analytics, research and supply chain management all offer routes into global value chains.