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Bangladesh must boost product traceability for EU rules
Speakers at an event on Sunday underscored the urgent need to strengthen its national product traceability systems as global markets, especially the European Union, roll out new requirements tied to the circular economy, Digital Product Passports (DPP), responsible business conduct and sustainability reporting.
The issue was highlighted at a high-level policy meeting titled Enhancing National Traceability for EU Market Access and Sustainability, organised by the Commerce Ministry in collaboration with GIZ under its STILE-II project. Commerce Secretary Mahbubur Rahman chaired the discussion held at the ministry’s conference room.
Business Initiative Leading Development (BUILD) served as the thematic and research partner for the event.
In her keynote presentation, Ferdaus Ara Begum said that with 92% of Bangladesh–EU trade concentrated in the RMG sector, Bangladesh must align its policies with EU Green Deal requirements by approximately 2030.
The keynote underscored major challenges, including data validation, interoperability, institutional coordination, and initial compliance costs.
Drawing on international experiences from Vietnam, China, Japan, Korea, and India, she noted that public–private co-investment has been central to building robust traceability ecosystems.
She emphasised the need for a National Traceability Strategy supported by sector-specific measures, adding requirement of a jhut sector directory, institutional frameworks for traceability, expanding data infrastructure, and introducing green financing options to help Bangladesh’s industry implement traceability solutions.
Commerce Secretary Mahbubur Rahman referring the examples of Germany, emphasized the need for establishing a digital platform for data exchange, and in that respect requested support from development partners.
He also initiated the drafting of a National Traceability Strategy, which can include plans for a pilot of sector-specific traceability pilots under the leadership of Commerce Ministry and technical support from GIZ.
Additionally, he inaugurated the activities of a multi stakeholder dialogue platform chaired by the Export Wing of the MoC and comprising of members from public and private sector which will convene policy discussions around key sustainability topics, including the suggested traceability policy.
He advised EPB to initiate a project to explore Data Transparency and Governance issues by extending support to the exporters for having Unique ID, following experiences of implementing REX by EPB.
Representatives from BGMEA, BKMEA, and the leather sector shared updates on ongoing sector-specific pilot initiatives.
They noted that while progress is underway, these pilots must be scaled to include additional data layers and expanded to mid- and low-tier firms, including subcontracting units in RMG and down to the animal level in tanneries, to ensure compliance with the comprehensive traceability data requirements.
BGMEA Director Sheikh H M Mustafiz said RMG entrepreneurs are encountering problems for data requirements from several quarters, such as brands, buyers and private consultants.
“It is difficult for them to meet the requirement of multiple platforms, which do not follow a global or uniform standard as of yet. Therefore, a unified national standard or guideline would significantly streamline compliance and reduce costs.”
First Secretary of the German Embassy Dhaka, Jannis Hussain highlighted two major challenges, data availability and generation, and the required digital infrastructure, which has significant cost implications for suppliers.
The event brought together senior government officials, industry leaders, private-sector actors, and development partners to advance national-level dialogue on product traceability, an urgent prerequisite for sustaining Bangladesh’s export competitiveness in the context of evolving EU market regulations and post-LDC graduation challenges.
Additional Secretary and Wing Chief of Export Wing of Commerce Ministry Abdur Rahim Khan put emphasis on due diligence following examples of Thailand, Cambodia and other suggested for a national Project Implementation Unit (PIU).
Joint Secretary of the Planning Wing Mostofa Jamal Haider also highlighted how traceability can help Bangladesh negotiate better in a post LDC landscape, reports UNB.
Public-sector representatives such as BSTI, BCSIR, BPC, ERD, Planning Commission were present and representatives from different Textile and Apparel Association, Leather Sector, Fisheries sector etc were present and spoke on the occasion.