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Bangladesh could lose Tk 1,700 crore a year under GCC trade deal, study finds

A Bangladesh Trade and Tariff Commission study says removing import duties under a proposed free trade agreement with the Gulf bloc would cost revenue, and recommends keeping a 5 per cent duty on sensitive goods.

ScrollBeat DeskPublished: 20 Oct 2026, 14:01

Cargo and container handling at Chittagong Port, pictured in April 2015. File photo. Motiur Rahman Oni / Wikimedia Commons

Bangladesh could lose up to Tk 1,700 crore a year in government revenue if it removes import duties under a proposed free trade agreement with the Gulf Cooperation Council, according to a study by the Bangladesh Trade and Tariff Commission.

The study recommends keeping a 5 per cent duty on goods from sensitive industries and on products that generate substantial revenue, and cutting tariffs in stages so that domestic industries have time to adjust. The findings were reviewed at a validation workshop chaired by the commerce secretary earlier this month.

Bangladesh imported goods worth $5.64 billion from the six-member bloc in the 2024-25 fiscal year and exported goods worth $689.26 million, leaving a large trade gap. Petroleum products account for most of the imports. The commission estimates that imports from the GCC could rise by about $206.88 million under the proposed arrangement.

The GCC comprises Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman and Bahrain. Its average most-favoured-nation tariff on imports is 5.03 per cent, including 6.62 per cent for agricultural products and 4.8 per cent for non-agricultural goods. The bloc imported about $13.54 billion of ready-made garments in 2024, but Bangladesh holds only a small share of that market, according to the Bangladesh Knitwear Manufacturers and Exporters Association.

Officials see room to expand exports of halal food, leather goods, home textiles, ceramics, medicines, agricultural products and light engineering goods. A senior official of the commerce ministry's FTA wing said gradual tariff cuts would help manage the revenue impact rather than removing duties at once.

The Economic Relations Division told the meeting that the GCC matters for energy security and strategic ties, and suggested that Bangladesh consider a broader Comprehensive Economic Partnership Agreement or an Economic Partnership Agreement. Bangladesh has already signed a memorandum of understanding with the GCC covering five sectors, but a commerce ministry representative said the country's preparedness should be assessed before it pursues a full agreement.

The proposal is expected to be submitted to the prime minister for approval. If approved, Bangladesh will formally approach the GCC through the Ministry of Foreign Affairs. Several ministries, including industries, agriculture, fisheries, expatriates' welfare and shipping, will also have to submit short- and long-term assessments of the deal's effects.

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Nassau Hall on the Princeton University campus in New Jersey. Jack Weis completed a PhD in chemical engineering at the university in 2024. Daderot, CC0 / Wikimedia Commons

Jack Weis has a doctorate in chemical engineering from Princeton University, a summa cum laude degree from Rice University and research that the Nobel committee cited when it awarded the 2024 physics prize. He has also been out of permanent work for two years, after applying to more than 2,300 jobs.

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Prime Minister Tarique Rahman stops bus to greet Saidpur college students

On his way from Saidpur airport to Durga Puja pavilions in Rangpur, the prime minister halted in front of Saidpur Government Science College, posed for selfies and handed out footballs and cricket bats.

ScrollBeat Desk20 Oct 2026, 15:27Open this article

File photo: Prime Minister Tarique Rahman meets pupils during a visit to BIAM Laboratory School in New Eskaton, Dhaka, on 25 April 2026. Press Information Department, Government of Bangladesh

Prime Minister Tarique Rahman stopped his bus outside a government college in Saidpur on Tuesday morning to take selfies with students and give them sports equipment, as he travelled to Durga Puja pavilions in Rangpur.

The prime minister landed at Saidpur airport in Nilphamari at 9:50am on a military aircraft from Tejgaon in Dhaka and then set off by road for Rangpur. Students of Saidpur Government Science College were gathered in front of the campus as the bus passed.

Seeing them, he stopped and spent several minutes with the students, posing for photographs and handing over footballs, cricket bats and other gear, the college principal, Abul Kalam Azad, said.

Azad said the students were delighted by the unannounced visit. He said he used the moment to ask the prime minister for help with the college's facilities, including two student hostels and a hall, and that a written request was handed over.

The stop opened a day-long tour of puja venues across three divisions. After visiting the Radha Gobinda temple in Rangpur, the prime minister was due to fly to Rajshahi to tour a mandap and address a rally, then visit a pavilion at the JM Sen Hall in Chattogram before returning to Dhaka at night.

He has spent much of Durga Puja visiting temples and mandaps. At Dhakeshwari National Temple in Dhaka on Monday, he said every citizen has equal rights and that the state belongs to people of all faiths.