Key takeaway: The Ministry of Commerce has launched a coordinated push to build a national traceability framework—seen as essential for Bangladesh’s continued access to the EU market, where 92% of exports are RMG-based.
The Ministry of Commerce, together with GIZ under the STILE-II Project, convened a high-level policy dialogue in Dhaka to address one of Bangladesh’s most urgent competitiveness challenges: building a robust, interoperable product-traceability system. The meeting underscored that traceability is no longer optional, but a prerequisite for maintaining market access and meeting fast-evolving EU sustainability and due diligence rules.
Chaired by Commerce Secretary Mahbubur Rahman, the dialogue brought together senior government officials, development partners, business associations, and value-chain representatives.
Key points highlighted:
• EU requirements linked to the Circular Economy, Digital Product Passports (DPP), corporate due diligence, and sustainability disclosures will shape Bangladesh’s export prospects by 2030.
• Bangladesh’s exports remain highly concentrated—92% of EU trade is RMG—making alignment with EU Green Deal rules a strategic necessity.
• International experiences—from Vietnam to Korea—show that public–private co-investment is essential for scaling national traceability ecosystems.
RMG entrepreneurs are struggling with fragmented data demands from multiple buyers and platforms that lack a unified standard. A national guideline, stakeholders argued, would sharply reduce duplication, compliance costs, and confusion. Expanding traceability to low- and mid-tier subcontractors, jhut traders, and upstream actors (including animal-level tracking for leather) will be critical to meet full value-chain requirements.
Secretary Rahman announced the start of a National Traceability Strategy, including sector-specific pilots supported by GIZ. The Ministry also established a multi-stakeholder dialogue platform and signalled the need for a Project Implementation Unit (PIU), following models in Thailand and Cambodia. Additional recommendations include green financing, digital infrastructure expansion, and a jhut sector directory.
The next phase will require coordinated investment, harmonised standards, and a digital architecture for secure data exchange—an area where Bangladesh seeks support from development partners. Improved traceability could also strengthen Bangladesh’s negotiating position in the post-LDC landscape.
As global markets tighten sustainability and transparency expectations, the country’s ability to deploy a credible, scalable traceability system will determine not just export continuity, but its industrial future.
