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Imposing Anti-dumping and Countervailing Duties in Bangladesh: Challenges and Way Forward

Mr. S. Jobayear Ahmed, Research Associate (Asia and Trade in Goods), BFTI
23 November 2025 WTO Issues
Imposing Anti-dumping and Countervailing Duties in Bangladesh: Challenges and Way Forward

Tariff protection in Bangladesh has helped shield domestic industries, supporting industrialization, job creation, and enabling diversification, particularly through protection for import-substitute sectors and infant industries[1] . However, some sectors of Bangladesh are vulnerable to substantial injury due to dumping and significantly lower price driven by subsidy provided by the exporting countries’ governments. In such cases, trade remedies—such as safeguards and anti-dumping— could be used to provide a transitional buffer while ensuring long-term competitiveness[2] . But the country is yet to adopt the World Trade Organization (WTO) recognized trade safeguards like anti-dumping and countervailing duties. Challenges like limited technical skills, low industry awareness, and bureaucratic obstacles engendered this non-adoption. In Bangladesh, there is a practice of reliance on customs duty, supplementary duty, and regulatory duty to protect domestic industries. Such protections do not necessarily address dumping since dumping is an exporter’s pricing practice. This higher tariff works as a protective measure for domestic manufacturers who often propose for raising duties on their competing products than imposing Anti-Dumping Duty (ADD) or Countervailing Duty (CVD) and restrain from filing allegations on dumping. In absence of dumping allegations, the concerned authority, Bangladesh Trade and Tariff Commission (BTTC) cannot take effective initiatives in this connection.

Dumping happens when a company sells its products in another country for less than its production cost or less than the price in its home country, harming local producers (of the importing country) with cheap imports. Countervailing is a policy that countries use to counter foreign government’s subsidies that negatively impact local producers, often by imposing duties[3] .

India accounts for approximately 17% of global anti-dumping filings. Besides India, United States, European Union(EU), Brazil, Argentina, Australia and Canada are the top initiators of the anti-dumping filings which are mainly targeted against China (by far), South Korea, Thailand, Indonesia, Japan and Russia. On the other hand, the United States is responsible for about half of all countervailing duty measures globally between 1995 and 2020 (CRS, 2021). European Union(EU), Canada and Australia have become the major users of countervailing duty measures that commonly levies the duty to counter the subsidies on imported products from China and India. The following figures exhibit the number of times the Anti-Dumping (AD) and Countervailing Duty(CVD) have been used by the major users from 2020 to 2024. It has been observed that USA, India (only SAARC country), China, Brazil and European Union(EU) are the major users of Anti-Dumping Duty(ADD) while USA and European Union(EU) are the single major user of Countervailing Duty(CVD) in the mentioned period.

From a comparison of trade remedy frameworks among India, China and Malaysia it has been observed that Malaysia requires the least amount of duration to file a case on dumping which is 120-180 days. India uses economic indicators for analyzing the injury and causal link to levy ADD while Malaysia uses the threat of injury for the same. In order to consider the base of ADD India compares between the margin of dumping and injury margin and imposes duty on the lesser one. For the CVD basis Bangladesh measures the amount of subsidy while India measures the extent of subsidy and Malaysia measures the extent of government subsidy.

Bangladesh’s Import Statistics

The import statistics show that the Bangladesh's common imports include: Food Grains, Milk and cream, Spices, Oil seeds, Edible oil, pulses, Sugar, Clinker, Crude petroleum, Chemical, Pharmaceutical products, Fertilizer, Dyeing and tanning materials, Plastics and rubber articles, Raw cotton, Yarn, Textile articles, Staple fiber, base metals and Capital machinery. A careful analysis of the top importable products of Bangladesh, reveals a heavy reliance on major suppliers like China and India. The following figures show the trend of import of Bangladesh in price:

Potential Products for ADD in Bangladesh

A recent study conducted by Bangladesh Foreign Trade Institute(BFTI), (Rashid et al., 2025) analysed trade data from the International Trade Centre (ITC) trade map to compare the unit prices of products exported worldwide with those of products exported to Bangladesh. It identified 172 products which are sold to Bangladesh with a lower price than the global market price. Industry insiders and Associations identified that out of the 172 products a total of 15 products (at 6 digits HS Codes level) where ADD may be applied. It may be mentioned that ADD are imposed if 25% businesses from a specific domestic industry supports it. Therefore, the 15 products enlisted in the following table may be further investigated by Bangladesh Trade and Tariff Commission(BTTC) and consulted with business organizations for levying ADD:


Potential Products for CVD in Bangladesh
The study reviewed trade policies and disputes from the WTO concerning subsidies in these countries. The analysis revealed that India exports 30 subsidized products and China exports 12 subsidized products to Bangladesh. From primary surveys, it was found that Bangladesh can produce 12 of the 42 subsidized products. The following 12 products may further be investigated by BTTC for levying CVD: 

Challenges for imposing Anti-dumping and Countervailing duties in Bangladesh

The key challenges for imposing the anti-dumping and countervailing duties include the reluctance of the Businesses to provide necessary documents, fragile data system of the country, limitations of the ASYCUDA system to track the potential dumping associated with pricing. Besides the complicated enforcement mechanism, capacity constraint of the key institutions associated with enforcement, limited market research, limited investigations in small and medium enterprises (SMEs) aimed to find vulnerabilities related to dumping, insufficient awareness among producers and procedural delays, and inadequate use of laws also limit the scope of imposing Anti-dumping and Countervailing duties.

Way Forward 
The way forward for imposing Anti-dumping and Countervailing duties in Bangladesh include: 
• Strengthening institutions like BTTC with Legal and Auditing knowledge, skilled manpower and resources for better case management.
• Forming a dedicated unit for investigations and assessments.
• Training government officials, lawyers and developing training materials for key industries. 
• Increasing awareness of anti-dumping and countervailing procedures through campaigns and online resources is important to clarify the misconceptions. 
• Improving regional cooperation and bilateral support from countries with successful trade remedial measures.
• Improving data collection and establishing a National Trade Remedies Training Institute for bridging the skills gap in trade law and economics through training, integrating academic curricula, and enhancing industry capacity.

References
 [1] Policy Research Institute of Bangladesh. (2023). National tariff policy opens doors for export diversification. The Financial Express / Policy Research Institute of Bangladesh.
 [2]Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2018). International economics: Theory and policy (11th ed.). Pearson.
 [3] Salvatore, D. (2019). International economics (13th ed.). Wiley.
[4] Vietnam Chamber of Commerce and Industry (VCCI). (2023). Anti-dumping measures and global trade remedies: Analysis of WTO data. VCCI/WTO Database.
[5] Congressional Research Service. (2021). U.S. trade remedies: Antidumping, countervailing duties, and safeguards. https://crsreports.congress.gov
[6]World Trade Organization. (2024). World trade report 2024: Re-globalization for a secure, inclusive and sustainable future. WTO. https://www.wto.org
[7]Bangladesh Bank. (2024). Annual import payments of goods and services: 2023-2024 (Statistics Department). https://www.bb.org.bd/pub/annual/imppayment/annual%20publication%2023-24.pdf
[8]Rashid, H., Simon, H. M., Ahmed, S. J., & Siddika, A. (2025). Identifying the Area of Products for Imposing Anti-Dumping and Countervailing Duties. Bangladesh Foreign Trade Institute(BFTI). ISBN 978-984-35-7864-8
[9]Rashid, H., Simon, H. M., Ahmed, S. J., & Siddika, A. (2025). Identifying the Area of Products for Imposing Anti-Dumping and Countervailing Duties. Bangladesh Foreign Trade Institute(BFTI). ISBN 978-984-35-7864-8



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