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

On November 25, 2010, major Bangladeshi media outlets reported that the European Union is set to introduce a more flexible Generalized System of Preferences (GSP) for the world’s least developed countries (LDCs), effective from January 2011. This updated policy removes restrictions on the origin of raw materials used in exports to the EU, which is expected to significantly boost Bangladesh's textile and garment industry. Previously, Bangladeshi manufacturers faced challenges due to high tariffs on imported materials, especially when exporting to Europe. For example, many textile companies sourced fabrics from China and had to pay a 12% import duty before exporting their finished products to the EU. With the new GSP rules, these tariffs will be eliminated, allowing Bangladeshi exporters to operate more efficiently and compete more effectively in the European market. As a result, the country's garment sector is anticipated to experience substantial export growth in the coming years, marking a positive shift in its trade relations with the EU.