Background
The agro-products and processed food industries in Bangladesh represent a significant pillar of the national economy, contributing an impressive 11.2% to the country’s GDP, nearly three times the global average of 4% [1]. This substantial contribution not only underscores the sector’s pivotal role in domestic economic growth but also in enhancing Bangladesh’s position in international trade. The increasing global demand for fresh, semi-processed, and ready-to-eat food products presents a substantial opportunity for Bangladesh to diversify its export basket. However, compliance issues related to Sanitary and Phytosanitary (SPS) requirements become major challenges for market access to traditional and non-traditional markets that ultimately define the competitiveness of Bangladeshi products.
Merchandise Export of the Agro Products and Processed Food Sector from Bangladesh
Table 1 shows the annual export of agro-products and processed food products of Bangladesh from 2020 to 2024. The data reveals fluctuating trends across different product categories. For instance, fish and crustaceans, molluscs and other aquatic invertebrates show a steady increase from $ 475.55 million in 2020 to a peak of $ 514.33 million in 2022, followed by a decline in 2023 and a slight recovery in 2024. Conversely, edible fruit and nuts exhibit a significant upward trend, rising from 7.85 % in 2020 to 60.60% in 2024. The total trade value of the agro-products and processed food products increased from $ 988.23 million in 2020 to a peak of $1,289.43 million in 2022, then decreased to $1,070.79 million in 2023, before rising modestly to $1,109.19 million in 2024 [2] . Despite overall export growth, the relative contribution of agro and processed food products to Bangladesh’s export portfolio has decreased slightly over the period.
Challenges in Implementing SPS Measures and Pathways for Progress
Lack of Standards and Compliance
The higher tariff protection, anti-export bias along with weak domestic standards and conformity assessment bodies’ certification, poor compliance with International Plant Protection Convention (IPPC) certification for plant, the Codex Alimentarius for Food and World Animal Health Organization (WAHO) certification for meat and meat-related products, leads to contraction of export of agro-food products. This disparity, along with the high costs and challenges of meeting stringent global standards, discourages many manufacturers, especially smaller firms, from pursuing exports. Furthermore, the average Total Tariff Incidence (TTI) of beverages, spirits and vinegar (437.30%), preparations of cereals (83.9%), and Miscellaneous Edible Preparations (95.58%) is very high in Bangladesh [3] . With a large domestic market, many firms focus on local sales, neglecting international quality benchmarks and leaving them unprepared for the demanding export markets of the EU, UK, and US. To overcome the challenges, it is essential to strengthen domestic standards and enforcement mechanisms related to agriculture and processed foods that may facilitate export diversification. Given the fact, Bangladesh needs to diversify its export basket as its merchandise export is heavily reliant on the Ready-Made Garment (RMG) industry, which accounts for more than 85% of total exports in 2023 [4]. This high concentration poses risks similar to ‘Dutch Disease’, where overdependence on one sector can hinder diversification and make the economy vulnerable to external shocks.
Constraints in Legislative Structure
Bangladesh faces significant challenges in its legislative framework, as the SPS regulations are fragmented across multiple ministries, causing weak coordination and overlapping responsibilities. Many existing laws, including the Animal Diseases Act (2005), the Plant Quarantine Act (2011), the Food Safety Act (2013), and the Fish and Fish Products Ordinance (1983), are not fully aligned with international standards such as the WTO SPS Agreement. This limits Bangladesh’s ability to meet stringent import requirements. Weak coordination among key agencies and difficulties in harmonising domestic laws with global standards further restrict export market access[5] . To address these issues, it is recommended to establish consultative bodies with stakeholders and experts to systematically review and reform SPS-related laws, ensuring alignment with international standards like International Organization for Standardization (ISO) and Codex Alimentarius for improved compliance and trade integration.
Limited Number of Products Requiring Mandatory Certification by BSTI
The Bangladesh Standards and Testing Institution (BSTI) has the mandate of certifying 275 products, while it has developed 4,095 national standards (BDS), including 619 for agricultural and food products. BSTI’s accreditation under ISO/IEC 17025:2017 covers 283 parameters for 35 products, but there is a need to enhance its technical and laboratory capabilities to test for chemical residues, heavy metals, antibiotics, hormones, pesticides, pathogens, mycotoxins, and provide diagnostic services [6] . In comparison, Vietnam has promulgated more than 13,000 national standards [7] . Vietnam follows ISO 22000, which is an international standard for food safety management that integrates Hazard Analysis and Critical Control Points (HACCP) principles with ISO 9001 management practices [8] . BSTI may strengthen collaboration with regional bodies like the South Asian Regional Standards Organisation (SARSO), which aims to harmonise standards and promote mutual recognition of conformity assessments in South Asia, reducing non-tariff barriers and boosting trade diversification. By systematically expanding accredited testing capabilities, enhancing infrastructure, and maintaining international best practices, BSTI may meet the requirements of the Mutual Recognition Agreements (MRAs) and facilitate Bangladesh’s integration into the global agro and processed food markets.
Limited Accredited Laboratory
The Bangladesh Accreditation Board (BAB), accrediting 90 laboratories and about 144 Conformity Assessment Bodies (CABs) [9], faces challenges including limited technical expertise, low awareness of accreditation benefits, and developing international recognition. BAB may prioritise capacity building and quality services, strengthen international recognition to enhance accreditation demand, improve quality assurance and accredit more laboratories to expand export opportunities for Bangladeshi products. The government may increase investment in accredited testing laboratories by increasing government incentives and policy support.
Lack of Mutual Recognition Agreement
The absence of adequately equipped and operational accredited testing procedures is a significant challenge to obtaining accreditation, establishing Mutual Recognition Agreements (MRAs) with neighbouring South Asia Subregional Economic Cooperation (SASEC) countries (Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka), and implementing Conformity Assessment Procedures that aligned with international standards. To attract bilateral trade partners such as the EU and India for mutual recognition agreement, there is a critical need to upgrade laboratory equipment, enhance technical capacity through trained personnel, and expand the scope of accredited testing procedures in accordance with international norms.
Lack of Awareness among the Stakeholders
There is a notable lack of stakeholder awareness in Bangladesh regarding
(i) Rules and regulations of modern production systems
(ii) Adverse effects of insecticides and pesticides
(iii) SPS requirements of importing countries and
(iv) Good Agriculture Practice and Traceability
In contrast, Thailand has effectively increased awareness of Codex standards by disseminating meeting outcomes and progress updates among relevant stakeholders [10] . To capitalise on emerging opportunities, the Ministry of Food, Plant Quarantine Wine (PQWC), Department of Agriculture Extension, Department of Livestock, BSTI and the Bangladesh Food Safety Authority (BFSA) may implement pragmatic measures to enhance national awareness through active public and private sector participation.
By addressing these SPS-related constraints through targeted investments for establishing more accredited labs and testing procedures, consistent application of standards both for domestically consumed products and exported products and SPS compliance integration in supply chain management, Bangladesh can unlock the export potential of food and agricultural products.
References
[1]The World Bank Group. (2025). Agriculture, forestry, and fishing, value added (% of GDP) – Bangladesh. Retrieved from https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=BD
[2]International Trade Centre (ITC) Trade Map. (2025). List of products exported by Bangladesh. Retrieved from https://www.trademap.org/Product_SelCountry_TS.aspx?nvpm=1%7c050%7c%7c%7c%7cTOTAL%7c%7c%7c2%7c1%7c1%7c2%7c2%7c1%7c1%7c1%7c1%7c1
[3]Bangladesh Customs. (2025). Customs Tariff Fiscal Year: 2025-2026. Retrieved from https://customs.gov.bd/files/Tariff-2025-2026(02-06-2025).pdf
[4]SAARC Chamber of Commerce and Industry (SCCI). (2024). Export Diversification Challenges and Opportunities for Bangladesh. Retrieved from https://saarcchamber.org/wp-content/uploads/2024/10/Export-Diversification-Challenges-and-Opportunities-forBangladesh.pdf
[5]Razzaque, M. A., Rabi, R. I., & Dey, B. K. (2024). Fostering export diversification in Bangladesh: Issues and way forward. Asian Development Bank. Retrieved from https://www.adb.org/sites/default/files/publication/100000/sawp-100-fostering-export-diversification-bangladesh.pdf
[6]Bangladesh Foreign Trade Institute (BFTI). (2024). Challenges of sanitary and phytosanitary measures (SPS) in the export competitiveness of Bangladesh. Retrieved from https://www.bfti.org.bd/research-details/16 Challenges and Opportunities for Bangladesh. Retrieved from https://saarcchamber.org/wp-content/uploads/2024/10/Export-Diversification-Challenges-and-Opportunities-forBangladesh.pdf [7]Vietnam Law and Legal Forum. (2025). National standards help to raise competitiveness of Vietnamese goods, services. Retrieved from https://vietnamlawmagazine.vn/national-standards-help-to-raise-competitiveness-of-vietnamese-goods-services-70629.html#:~:text=News-,News,the%20past%20decade%2C%20he%20emphasized.
[8]The-shiv. (2025). Food Safety Certification in Vietnam 2025: Compliance & Requirements. Retrieved from https://the-shiv.com/food-safety-certification-in-vietnam/
[9]International Laboratory Accreditation Cooperation (ILAC). (2025). News from BAB: Perpetual Quest for Excellence in Accreditation Services. Retrieved from https://ilac.org/latest_ilac_news/news-from-bab-perpetual-quest-for-excellence-in-accreditation-services/
[10]Rashid, H., Uddin, M.J., Azam, M.O., Sunny, H.M. (2024). Challenges of Sanitary and Phytosanitary Measures in Export Competitiveness of Bangladesh, Bangladesh Trade and Tariff Commission. Retrieved from: https://www.researchgate.net/publication/392436865_Challenges_of_Sanitary_and_Phytosanitary_Measures_in_Export_Competitiveness_of_Bangladesh
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