Outstanding opportunities exist for pharmaceutical companies through a combination of favourable regulatory and generous tariff schemes.
There is extensive tariff-free access to the EU, USA, and Japan under the Generalized System of Preferences (GSP) and reduced tariffs for exports to India and China.
As a least developed country (LDC), Bangladesh enjoys tariff and quota-free access under the Generalized System of Preferences (GSP) to the EU market for all its products (apart from arms and armaments) provided that they satisfy the EU rules of origin. These stipulate that manufactured products have to be “sufficiently worked or processed” in the exporting country in order to qualify as having originated there.
Bangladesh also enjoys tariff-free access for exports of manufactured products to the USA and Japan under their respective Generalized Preference Systems. The GSP* therefore allows Bangladesh tariff-free access to a market of over 882m people for its pharmaceutical products. (1, 2, 3) Bangladesh will also benefit from membership of the South Asian Free Trade Area (SAFTA) which commits India to reduce its tariffs on a wide range of products, including pharmaceuticals. (4)
Furthermore, Bangladesh belongs to the Asia Pacific Trade Agreement (APTA) and therefore enjoys reduced tariffs on exports of certain goods to China. These include many pharmaceutical products. Of course rules of origin apply. (5)