Canada has renewed the General Preferential Tariff (GPT) scheme till 2034, which will enable the continuation of duty-free and quota-free access in the Canadian markets for Bangladeshi garments.
“Bangladesh was eligible for the GPT scheme under its Least-Developed Country (LDC) status since January 1, 2003,” the Bangladesh Garment Manufacturers & Exporters Association (BGMEA) said.
As the GPT scheme is renewed every 10 years, the existing version of GPT is going to expire at the end of 2024.
The Canadian Parliament has approved the finance bill and the GPT scheme has been extended till the end of 2034.
This comes on the heels of the UK launching a Developing Countries Trading Scheme (DCTS) which will enable Bangladesh to continue exporting duty-free garments to the UK, post-expiry of its LDC status in 2026.
“The Canadian government has created a new scheme under its GPT which is referred to as ‘GPT+’. This new scheme would look to expand product coverage under the GPT program,” BGMEA added.
Under GPT+, developing countries that meet and progressively improve their adherence to international labor rights and environmental standards would be eligible for additional tariff benefits beyond what is provided through the GPT program.
The goal is closer alignment of Canada’s non-reciprocal tariff programs with broader trade and development policy objectives, including those pursued under Canada’s free trade agreements (FTAs).
In fiscal 2022-23, Bangladesh apparel exports to Canada reached US $1.55 billion, up 16.55 percent year on year, while the share of Bangladesh in Canada’s overall clothing imports is 13.95 percent.
Duty free access to Canada for Bangladeshi garments will continue
