Bangladesh has taken a policy decision to introduce free trade zones for the first time, with an initial plan to develop a free trade hub on around 600 acres of land in Anwara, Chattogram.
The decision was disclosed on Monday at a press briefing held at the Bangladesh Foreign Service Academy in Dhaka by Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority.
At present, Bangladesh does not have any functional framework or operational concept of a free trade zone, he said, adding that the issue has been under discussion for a considerable period.
Explaining the concept, Ashik Chowdhury said a free trade zone refers to a designated area where customs obligations are either waived or significantly relaxed. Such zones allow storage, manufacturing and re-export of goods.
To illustrate the point, he cited the example of US cotton. According to him, one of the main reasons American cotton is used less in Bangladesh is time to market, as the lead time involved often makes it commercially unviable. However, if US cotton could be stored in Bangladesh in a location treated as being outside the country’s customs territory, local factories could draw from that stock when needed, while surplus could also be re-exported to other countries such as Vietnam.
He said the proposal has received policy-level support and will be placed before the cabinet for final approval. Anwara has been identified as the initial location for the project.
Referring to global examples, Ashik Chowdhury highlighted the Jebel Ali Free Zone in Dubai. Spanning about 52 square kilometres, the zone handles trade worth an estimated $190 billion annually—exceeding the total trade volume of many countries. He added that the Jebel Ali Free Zone alone contributes around 36 percent to Dubai’s gross domestic product.
According to him, implementing the decision will require changes to existing laws, policies and regulations, which the next government is expected to undertake. He expressed hope that by the end of the year, the free trade zone initiative would reach a clearly defined initial stage.
If implemented, the initiative could significantly reduce raw material lead times, accelerate production and export processes, facilitate transshipment and re-export, and open up new investment opportunities in port-centric logistics.
