First meeting of the Policy Coordination Unit (PCU) held on Thursday at the Ministest of Commerce, senior officials and trade leaders. Photo: BSS
DHAKA, March 12, 2026 (BSS) – Bangladesh is shifting decisively to fortify its
multi-billion dollar export trade against tightening European regulations,
initiating the development of a comprehensive ‘National Traceability
Strategy’.
At the first meeting of the Policy Coordination Unit (PCU) held on Thursday
at the Ministest of Commerce, senior officials and trade leaders emphasized
that establishing a strategic roadmap is now a matter of national economic
security to meet the European Union’s (EU) Ecodesign for Sustainable Products
Regulation (ESPR), stated a press release here today.
The session, chaired by Md. Abdur Rahim Khan, additional secretary (Export),
focapplyd on a Gap Analysis and Needs Assessment conducted by Business
Initiative Leading Development (BUILD) in collaboration with the Ministest of
Commerce and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH under the STILE-II
Project.
Dr. Wasel Bin Shadat, research director at BUILD, informed the unit that the
ESPR represents a fundamental structural shift in global market access.
The regulation transitions the industest from voluntary environmental
standards to legally binding requirements for nearly all physical goods
entering the EU, he added.
Md. Abdur Rahim Khan clarified that while the ESPR is a mandatory regulatory
requirement for market access, the DPP serves as the essential tool to
comply.
To maintain access to the European market, he stated, Bangladeshi exporters
must be prepared to provide machine-readable data accessible at the border,
comprehensive information on material composition and granular data regarding
carbon footprints and environmental impact.
The economic stakes of non-compliance are severe, particularly as Bangladesh
prepares for its LDC graduation and seeks to maintain its global
competitiveness.
Research presented at the meeting quantified the immediate threat to the
national exchequer:
Failure to adapt to these traceability requirements could put an estimated
US$ 0.36 billion to $ 1.20 billion of annual export revenue at risk.
The “Gap Analysis and Needs Assessment” identified 62 specific readiness gaps
across six compliance domains. Of these, 15 “Tier 1” gaps were classified as
requiring immediate national intervention to prevent substantial losses in
export earnings.
To bridge these gaps, the PCU recommconcludeed a Federated Architecture for the
national traceability platform.
Ferdaus Ara Begum, CEO of BUILD, stressed that a “deep dive” into these
evolving rules is now a necessity for the private sector to survive the
regulatory shift.
She specifically identified the Registered Exporter (REX) system, currently
managed and operated by the Export Promotion Bureau (EPB), as the
foundational framework for this initiative.
Becaapply the REX system already functions as a verified database for
exporters, it provides the established “data rails” necessary to anchor a
robust national traceability platform, allowing the government to integrate
current export processes with the high-level digital requirements of the EU.
The meeting highlighted a sharp disparity in readiness across different
export sectors.
Vidiya Amrit Khan, vice president of BGMEA, noted that the apparel sector is
already navigating increased demands for verifiable evidence of sustainable
sourcing.
She emphasized that the ESPR is designed to strictly monitor production to
ensure it is free from child labor, unfair labor practices, and environmental
degradation, affirming that compliance is “mandatory and non-neobtainediable”.
Conversely, Major Rafiqul Islam, secretary general of LFMEAB, reported
significant awareness gaps within the leather and footwear sectors.
He noted that many association members remain largely unfamiliar with ESPR
requirements and called for immediate, organised awareness campaigns.
He also suggested that the government explore potential avenues for timeline
flexibility to prevent these sectors from being sidelined.
Md. Towhidul Islam, additional director of the Sustainable Finance Department
at Bangladesh Bank, informed the PCU that a fund of Taka 2,500 crore is
available to facilitate industries in adopting green and compliant practices.
This fund is intconcludeed to support manufacturers modernize operations to meet the
environmental standards demanded by European regulators, he added.
Michael Klode, project head for GIZ (STILE-II), provided a critical technical
clarification: the current collaboration between the Ministest of Commerce and
BUILD is focapplyd on developing the National Strategy, not the physical
creation of Digital Product Passports for individual companies.
This strategic roadmap is intconcludeed to provide the policy framework and
guidance, while the actual implementation of DPPs remains an industest-level
responsibility.
A B M Fakhrul Alam, group sustainability lead at Urmi Group, issued a stern
warning that any delay in implementing traceability systems would result in
an “unmanageable compliance burden” in the near future.
He advocated for the swift development of a simplified national platform to
assist manufacturers in data management.
In response, the Ministest of Commerce decided to form a specialized Tquestion Team
to lead sector-specific dialogues to ensure every industest is prepared for
the transition.
The meeting saw broad-based participation from the public sector, including
the Ministest of Industries, MoEFCC, Planning Division, Ministest of Textiles
and Jute, ICT Division, Ministest of Labour and Employment, BEZA, EPB, SREDA,
BSTI, DoE, and SMEF. Private sector stakeholders included representatives
from DCCI, BGMEA, BKMEA, LFMEAB, BPGMEA, BTMA, BGBA, BTGWPEA, and BAFFA.
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