Standardisation is holding back Bangladesh’s huge potential in agro-export

As per the Sanitary and Phytosanitary (SPS) agreement of the World Trade Organisation (WTO), every member country has the right to impose SPS measures to protect human, animal or plant life or health. Members are encouraged to base their measures on international standards, guidelines and recommendations, and this process is referred to as harmonisation. Trade-related Barriers for Technical trade (TBT) are applicable to industrial goods maintaining standard and testing-related issues, which must also comply with the international standard. 

Bangladesh must be prepared fully with an adequate SPS and TBT infrastructure as per the WTO agreement, otherwise, we will face stiff competition in the export markets after we graduate from the LDC status. Secondly, the agreement states that environmental measures should be applied so as not to constitute any form of discrimination or a disguised restriction on international trade. 

As an agricultural country, Bangladesh has huge export potential in the agro sector. However, Bangladeshi entrepreneurs are struggling to fully enter the international markets with diversified agro-export products. 

In 2021 export in the agro sector was only about USD one billion (ITC Trade Map) whereas India's export was USD 35.58 billion, Malaysia's was USD 28.37 billion, Indonesia's was USD 46.83 billion, Thailand's was USD 35.12 billion, Vietnam's was USD 22.26 billion and even Sri Lanka's figure stood at USD 3.07 billion. 

Entrepreneurs have suggested that Bangladesh can grab a significant amount of exports if proper European Union standards for export are met. In 2021 Belgium imported 12.1% ($515 million) of the world's agro imports, the Netherlands imported 8.92% ($379 million), the United States imported 6.6% ($280 million), Spain imported 6.53% ($278 million), Russia imported 5.22% ($222 million). 

One of the main constraints faced by exporters in Bangladesh is the non-availability of a Global Certification system for the agro sector. The certification given by the national certification organisation BSTI is not always acceptable to the importing countries. 

The Global Good Agricultural Practice (GAP) aims to establish rules of common acceptance worldwide, develop a framework of good agricultural practice, maintain good practices, take care of adverse environmental impacts of farming operations, reduce the use of chemicals and commit to occupational health and services as well as animal welfare. They also aim to include an integrated pest and crop management system. 

Exporters see potential in increasing the export of potatoes, since Bangladesh produces them in huge quantities and approximately 30% of potatoes are surplus to our needs. However, due to the absence of Global GAP certification, this is not yet possible. 

On the other hand, Indonesia has been exporting potatoes to several countries. Every three years Indonesia requires extensive information from the Canadian Food Inspection Agency (CFIA) to renew its recognition of Canada's Fresh Food of Plant Origin (FFPO). Indonesia has the recognition of FFPO products exported to Canada, which include apples, beans, blueberries, cherries, potatoes, soya beans, cranberries, onions etc.

Onions can also potentially be selected for export to several countries, as we have a surplus in some seasons. While initially, there were some concerns whether we have the varieties required for export, onion growers have responded by developing 14 varieties, with more coming up. So at the moment, variety is no longer a concern, the only issue is the  Good Agricultural Practice certification.