The EU will adopt a more generalized system of generalized benefits for some countries from January 2011

On November 25, 2010, major media outlets in Bangladesh reported that the European Union is set to introduce a more flexible and expanded Generalized System of Preferences (GSP) for the world’s least developed countries (LDCs), starting from January 2011. This new policy marks a significant shift, as it no longer imposes restrictions on the origin of raw materials used by LDCs exporting goods to the EU. For Bangladesh's booming textile industry, this change is a game-changer, as it will eliminate previous bottlenecks caused by high import tariffs on raw materials. As a result, export growth is expected to accelerate dramatically. Previously, Bangladeshi garment manufacturers relied heavily on importing fabrics and textiles from China, only to face a 12% tariff when exporting finished products to the EU. This added cost often limited their competitiveness. However, under the updated GSP rules, these tariffs will be completely waived, providing much-needed relief to local exporters. The reform not only boosts the profitability of Bangladeshi textile companies but also strengthens the country's position in the global supply chain. Analysts believe this move could lead to increased foreign investment and further development of the manufacturing sector in Bangladesh.