With the European Union’s decision to suspend India’s Generalized Scheme of Preferences (GSP) tariff benefits for the 2026-2028 period, there is now the opportunity for our export sectors to capitalize.

For our RMG sector specifically, battered by global demand shocks and rising costs, this is a chance to expand market share while tariff-free access still holds. 

However, we must be wary that such privileges are temporary. As Bangladesh graduates from LDC status - scheduled for this year - tariffs will inevitably follow. 

Under the EU’s Everything But Arms (EBA) scheme, Bangladesh has enjoyed duty-free access for decades, turning Europe into its largest and most reliable buyer. But this lifeline will expire in November 2029, after a three-year transition following LDC graduation.

We must therefore treat this moment not as a windfall to be enjoyed passively, but as a foundation for reform. Expanding exports while tariffs remain absent is essential, but equally important is preparing for the day when those tariffs arrive. 

Diplomacy must therefore play its part. Bangladesh cannot afford to rely on the benefits it enjoys today and must negotiate bilateral and regional trade agreements that secure favourable terms beyond LDC graduation. India announced the conclusion of negotiations for a Free Trade Agreement with the EU -- this is what we must inevitably look towards as well.

Beyond future deals, we must also be diversifying product lines beyond basic garments, investing in higher-value apparel and strengthening compliance with labour and environmental standards that buyers increasingly demand.

The opportunity is here, but it will not stay open for long. Time is running out to act decisively, not only to capitalize on this opportunity to expand market share in the EU, but prepare for a future when we lose our own preferential position.