Economic Information

Note: 2013 data in Canadian dollars ($CAD)
Source: IMF World Economic Outlook, World Bank Data, CIA World Factbook, Bank of Canada (Currency Conversion 15/12/2015).

Security

The Department of Foreign Affairs, Trade and Development Canada (DFATD) recommends that Canadians exercise a high degree of caution when traveling in Bangladesh due to the fragile political situation. While there is no national advisory in effect for Bangladesh, DFATD advises against all non-essential travel to Chittagong Hill Tracts due to politically motivated violence and kidnapping, as well as sporadic ethnic clashes. For detailed and up-to-date information on travel security, please refer to the DFATD Travel Report for Bangladesh.

Trade Information

Note: Data in millions of Canadian dollars ($CAD)
Source: Trade Data Online (Industry Canada), Trade Map (International Trade Centre), World Integrated Trade Solution (World Bank), United States Trade Representative

Trade Opportunities

Since Bangladesh is the second exporter of textiles and garments to the world as well as the Canadian market, these products offer the most trade opportunities, followed by fish and seafood. As Bangladesh intends to become a middle-income country by 2021, additional efforts are being made to boost exports in other sectors. Leather products are among the country’s 10 most exported products to the world and could present favourable trade opportunities for the Canadian market.

1. Apparel & Textiles

As the largest product group of Canadian imports from Bangladesh, the market opportunities for apparel items are well- known to Canadian importers. Most of the products imported into Canada are suits, jackets and shirts. In 2014, the import value of goods coming from Bangladesh reached CAD $4.6 million, an 8% increase compared to 2013. Bangladesh has openly committed to doubling its garment exports by 2021, which will result in considerable investments and improvements in the sector not only in infrastructure and business regulation but most importantly in labour, health and safety regulations. The next five years should therefore provide increased opportunities in apparel for the Canadian market.

2. Footwear

Within the footwear sector, the main product exported from Bangladesh to Canada is leather footwear. In 2014, imports in this sector have increased up to 4% compared to 2013, reaching CAD $2.3 million. In the last couple of years, Bangladesh’s share of leather exports to Canada reached CAD $1 billion in value. Experts say that the industry has the capacity to produce and export more, but recent political unrest have prevented some countries from placing new orders. The government is also creating a “Leather Zone” to concentrate industries in an organized production environment.

3. Fish and Seafood

Within this sector, shrimp and frozen fish are the main products imported from Bangladesh to Canada. In 2014, imports amounted to CAD $2 million with a 7% increase from 2013. Frozen fish are the second most profitable export product for Bangladesh, for which the European Union and the United States are the primary destinations. Complying with import product regulation is barrier that most producers have already overcome, but there are still some technical and management challenges for the industry to achieve its full potential.

4. Emerging sector: ICT services

ICT services are a rapidly growing sector in Bangladesh, while computer services are among the top five most exported products by the country. With an annual rise of 24%, ICT exports are projected to reach over CAD $500 million in industry value by 2020.  The government’s efforts are certainly the main contributor to the sector performance, as the country aims to become a “Digital Bangladesh” by 2021. According to the Global Information Technology Report 2014, Bangladesh ranks 119^th among 148 countries, and there are still important improvements to be reached within the political and regulatory environment.

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