Photo : The Ministry of Commerce (MoC)

DHAKA, Nov 30, 2025 (BSS) - The Ministry of Commerce (MoC), in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH under the STILE-II Project, today convened a high-level policy discussion on product traceability. 

This dialogue is considered an urgent prerequisite for sustaining Bangladesh’s export competitiveness in the face of evolving European Union (EU) market regulations and post-LDC graduation challenges, said a press release.

The meeting, chaired by Ministry of Commerce Secretary Mahbubur Rahman, reinforced that improved traceability systems can boost export credibility, promote circularity, and ensure compliance with emerging sustainability and due diligence requirements in global markets.

Business Initiative Leading Development (BUILD) provided thematic and research support for the discussion. 

Ferdaus Ara Begum, CEO of BUILD, emphasized that strengthening product traceability has become a critical national priority. 

This urgency stems from new global market requirements, particularly those introduced by the EU, linked to the circular economy, Digital Product Passports (DPP), responsible business conduct, and sustainability disclosures.

Given that 92% of Bangladesh–EU trade is concentrated in the Ready-Made Garment (RMG) sector, Bangladesh must align its policies with EU Green Deal requirements by approximately 2030.

Secretary Mahbubur Rahman initiated the drafting of a ‘National Traceability Strategy’. This strategy is expected to include plans for sector-specific traceability pilots, which will be led by the Ministry of Commerce with technical support from GIZ.

The keynote presentation underscored several major challenges, including initial compliance costs, institutional coordination, interoperability, and data validation. Drawing on international experiences, BUILD highlighted that public–private co-investment has been crucial in building robust traceability ecosystems in countries like Vietnam, China, Japan, Korea, and India.

BUILD recommended supporting the National Traceability Strategy with sector-specific measures, such as introducing green financing options to aid industry implementation, expanding data infrastructure, and requiring a jhut sector directory.

Mahbubur Rahman stressed the need for establishing a digital platform for data exchange, referencing Germany as an example, and requested support from development partners for this initiative.

RMG entrepreneurs are currently facing difficulties meeting data requirements from multiple buyers, brands, and consultants whose platforms lack a global or uniform standard. 

Sheikh H M Mustafiz, BGMEA Director, noted that a unified national standard or guideline would significantly streamline compliance and reduce costs.

Jannis Hussain, First Secretary of the German Embassy in Dhaka, highlighted two primary challenges: data availability and generation, and the significant cost implications of the required digital infrastructure for suppliers.

Representatives from the BGMEA, BKMEA, and the leather sector shared updates on ongoing sector-specific pilot initiatives. They reported that while progress is being made, these pilots must be scaled up to include low- and mid-tier firms, such as subcontracting units in RMG, and reach down to the animal level in tanneries, to meet comprehensive traceability data requirements.

To advance policy discussions, the Ministry of Commerce inaugurated a new multi-stakeholder dialogue platform, chaired by its Export Wing, involving members from both the public and private sectors. 

The Export Wing Chief Abdur Rahim Khan suggested establishing a national Project Implementation Unit (PIU), citing examples from Thailand and Cambodia. 

Furthermore, the Export Promotion Bureau (EPB) was advised to initiate a project to explore Data Transparency and Governance issues by supporting exporters in obtaining a Unique ID, drawing on experiences from implementing REX.

Joint Secretary of the Planning Wing Mostofa Jamal Haider also noted that improved traceability can help Bangladesh negotiate better in the post-LDC landscape.

The event brought together senior government officials, development partners, industry leaders, and representatives from sectors including textile and apparel, leather, and fisheries.