Assignment Name: Trade-Related Study on Market Access in China—Finding the Bottlenecks and Policy Recommendations
Country: Bangladesh
Client Name: Ministry of Commerce (MoC), Government of the People’s Republic of Bangladesh
As part of the same World Bank–financed BRCP-I initiative, the Ministry of Commerce has also commissioned DM WATCH LIMITED to conduct a study on “Market Access in China—Finding the Bottlenecks and Policy Recommendations.”
China is Bangladesh’s largest trading partner, with bilateral trade reaching USD 19.35 billion in 2021–22, yet heavily imbalanced in China’s favor. While Bangladesh enjoys 98% duty-free and quota-free access to China, exports remain concentrated in low-value raw materials (jute, leather, seafood), and face significant non-tariff barriers (NTBs), para-tariffs, certification requirements, and infrastructure bottlenecks.
The study seeks to identify the constraints and opportunities for enhancing Bangladesh’s exports to China, particularly in the context of LDC graduation and preference erosion.
Key objectives include:
- Analyzing bilateral trade flows and identifying product-level opportunities in China’s USD 2.4 trillion import market.
- Assessing bottlenecks such as NTBs, para-tariffs, logistics, standardization, and certification issues.
- Evaluating domestic challenges in Bangladesh, including product diversification, export facilitation, and infrastructure gaps.
- Analyzing the impact of LDC graduation on trade benefits and competitiveness.
- Assessing the potential of a Comprehensive Economic Partnership Agreement (CEPA) with China.
Formulating targeted policy recommendations for expanding market access and diversifying exports.
DM WATCH LIMITED will provide the following services under this study:
- Inception and Literature Review: Comprehensive desk research on Bangladesh-China trade, relevant FTAs, EPAs, and APTA, along with WTO trade statistics. Inception report submission.
- Trade Data and Econometric Analysis: Use of WTO, UNCTAD, BBS, and NBR data for descriptive, comparative, and econometric analysis of trade flows, tariffs, NTBs, and potential CEPA impacts.
- Stakeholder Consultations: Conducting at least 20 KIIs with government officials, exporters, importers, chambers, and trade associations; 2 FGDs with exporters and traders; and 1 public consultation workshop.
- Case Studies: Detailed case studies of successful and unsuccessful Bangladeshi exporters to China to identify best practices and gaps.
- Bottleneck Identification and Risk Assessment: Mapping of key NTBs, logistical challenges, and domestic constraints limiting exports. Assessment of risks from LDC graduation and preference erosion.
- Policy Recommendations: Development of actionable, evidence-based recommendations for market access improvements, including product diversification, certification alignment, and trade facilitation reforms.
- Reporting and Dissemination: Submission of draft and final study reports, policy briefs, and presentations. Organizing validation workshops to share findings with stakeholders and incorporate feedback.
