Are industries ready for trade agreements?

Bangladesh is entering a crucial phase in its trade diplomacy as the government pursues Free Trade Agreements (FTAs), Economic Partnership Agreements (EPAs) and other preferential arrangements with several countries. While these agreements may improve market access and reduce tariffs, their impact on domestic industry will extend far beyond customs duties. Modern trade agreements cover issues such as rules of origin, services, investment, government procurement, intellectual property rights, digital trade, environment, labour and dispute settlement. These provisions can create new opportunities, but they may also bring obligations, compliance costs and greater competition for Bangladeshi businesses.

The central question is whether adequate sector-specific assessments have been undertaken before these commitments are accepted. Chambers and industry associations should engage systematically with their members to identify which provisions are likely to affect particular sectors and assess their consequences. Businesses need to understand the practical implications of each commitment. What will compliance cost? How will competition change? Which sectors may require safeguards, exemptions or longer transition periods?

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Bangladesh must therefore look beyond negotiating preferential market access. Government agencies and industry bodies should jointly assess commitments, identify vulnerable sectors and develop practical transition strategies.

Rules of origin, for instance, will determine whether Bangladeshi products qualify for preferential access. Investment provisions could alter the competitive landscape by encouraging greater foreign participation, while government procurement commitments may open domestic contracts to international suppliers. Intellectual property and digital trade provisions could require businesses to adapt to new regulatory standards.

Environmental and labour commitments also require careful consideration. Increasingly, trade agreements incorporate sustainability requirements relating to emissions, waste management, supply chain transparency and labour practices. While larger companies may have the resources to adapt, smaller enterprises could face significant financial and technical constraints.

Many businesses may not yet fully understand how these agreements will affect them once implemented. This points to the need for a stronger mechanism to connect trade negotiations with industry preparedness. Chambers and associations should establish structured consultations involving businesses, sector specialists, policymakers and legal experts. Major agreements should be reviewed chapter by chapter, with sector-specific assessments identifying risks, opportunities and adjustment needs.

A simple but important question should guide this process: What would happen to your sector if this provision took effect tomorrow? Would the industry be ready, or would it require safeguards, exclusions or a transition period? These issues must be addressed before commitments become legally binding. This is particularly important because modern trade agreements often establish committees and other institutional mechanisms that influence how commitments are interpreted and implemented over time.

Bangladesh must therefore look beyond negotiating preferential market access and give equal attention to implementation readiness. Government agencies and industry bodies should jointly assess commitments, identify vulnerable sectors and develop practical transition strategies. The success of an FTA or EPA should not be measured simply by the tariff preferences secured. It should be judged by whether Bangladeshi businesses are prepared to comply, compete and benefit under the new trading framework. There remains a clear gap between negotiating agreements and preparing industry for their consequences. Closing that gap must be an urgent priority before potential opportunities become unintended burdens.

The writer is the vice-chairman of Newage Group of Industries.