November 2025 Overview: LDC D-365 and Trade Policy Shifts
November 2025 marks exactly one year before Bangladesh's scheduled LDC graduation in November 2026, making this the final window for companies to establish market positions under the current preferential trade regime. Three historic policy developments converged this month: the official confirmation of U.S. GSP reinstatement effective January 2026, the formal submission of Bangladesh's EU GSP+ application, and the launch of a Korea-Bangladesh CEPA feasibility review.
This article integrates Round 9 monitoring (trade and commerce) with Round 10 monitoring (macroeconomic conditions) to deliver a comprehensive assessment of November's major developments and their strategic implications for Korean businesses.
D-365
LDC Graduation Countdown
Fixed for November 2026
BDT 117
Exchange Rate
Per USD — stabilizing
7.5%
Inflation Rate
On a sustained downward trend
$23B
FX Reserves
Stabilizing after BOP pressure
$42B
Cumulative Exports (FY26)
July–November
$2.1B
FDI (FY26 Jul-Nov)
Growing from infrastructure pipeline
6.5%
GDP Forecast (FY26)
Revised upward from 6.2%
Confirmed
U.S. GSP
Effective January 2026
LDC Graduation Preparation Status
Policy Implementation Status for LDC Graduation (as of November 2025)
| Policy Area | Key Task | Implementation Status | Deadline | Implications for Korean Business |
|---|---|---|---|---|
| EU EBA → GSP+ | Submit GSP+ application documents | Documentation formally submitted | 2026 Q1 review | Export tariff structure change after EBA ends in 2029 |
| U.S. GSP | GSP reinstatement confirmation | Officially confirmed for Jan 2026 | Effective Jan 2026 | Improved competitiveness of Bangladesh-produced goods in U.S. market |
| TRIPS Pharmaceutical | Pharmaceutical patent transition legislation | Draft legislation under preparation | Nov 2026 | Korean pharma exporters: API and generics strategy review needed |
| MFN Tariff Reform | MFN tariff schedule adjustment post-LDC | Under budget review | 2026 budget cycle | Import duty changes may affect input costs for EPZ/SEZ operations |
| Industrial Strategy | Infant industry protection policy drafting | At drafting stage | 2026 Q2 | Affects investment incentive structures |
| FTA/CEPA Review | Korea-Bangladesh CEPA feasibility assessment | Under active review | TBD (2026) | Directly positive for Korean bilateral trade and investment |
FY26 Trade Performance Analysis
FY26 Export Performance (Jul–Nov)
Garments (RMG)$35B+, +8% YoY — EU and U.S. orders strong
IT Services$1.2B, +28% — outsourcing boom continues
Fisheries and Seafood$550M, +10% — EU market recovery
Pharmaceuticals$180M, +15% — generics and API exports rising
FY26 Import Trends (Jul–Nov)
Total Imports$48B, +5% — controlled growth
Capital Goods$8B, +12% — active investment cycle
Crude Oil and Petroleum$6B, +3% — energy demand steady
Textile Raw Materials$5B, +7% — RMG input demand strong
4 Key Policy and Economic Developments in November
01
U.S. GSP Reinstatement Officially Confirmed
The Office of the United States Trade Representative officially confirmed Bangladesh's reinstatement under the GSP framework. From January 2026, preferential tariff treatment will apply to exports of more than 5,000 products to the U.S. This is the first GSP restoration in 12 years and materially strengthens Bangladesh's export competitiveness in the American market. Korean manufacturers operating in Bangladesh EPZ/SEZ zones should reassess U.S.-bound production strategies under the restored preference.
02
EU GSP+ Application Formally Submitted
Bangladesh has formally submitted its EU GSP+ application, a critical measure to preserve EU market access after the EBA (Everything But Arms) transition period ends in 2029. GSP+ requires ratification of 27 international conventions. Bangladesh is currently moving to ratify four additional core ILO conventions. EU GSP+ would maintain 0% tariffs on approximately 6,600 product categories — preserving the majority of the preferences currently enjoyed under EBA.
03
Korea-Bangladesh CEPA Feasibility Review Launched
A formal feasibility review for a Korea-Bangladesh Comprehensive Economic Partnership Agreement (CEPA) has been initiated. The CEPA is being structured as the primary institutional framework for expanding bilateral trade after LDC graduation, with core agendas covering tariff concessions on goods, services trade, and investment protection. Four additional economic zones have been designated this month, bringing the total approved to 40 of the planned 100, with discussions ongoing for a Korea-dedicated economic zone.
04
4 New Economic Zones Designated; Korea-Dedicated Zone Under Discussion
Bangladesh designated four new economic zones in November, expanding the total approved count to 40 of the 100-zone masterplan. More significantly, formal discussions have begun regarding a zone designated specifically for Korean investors, building on the precedent of the Japan-funded Araihazar SEZ. Companies that enter BEZA SEZs during the construction phase benefit from: 10-year corporate tax exemptions, 100% import duty exemptions on capital equipment, 100% foreign ownership, and repatriation rights.
Korea Market Entry Strategy Matrix
Bangladesh's November 2025 policy landscape creates differentiated opportunities across five strategic sectors. The following matrix maps each sector against its core opportunity, recommended entry approach, and urgency level ahead of LDC graduation.
Korea–Bangladesh Strategy Matrix: 5 Sector Opportunities (November 2025)
| Strategy | Target Sector | Core Opportunity | Recommended Approach | Urgency |
|---|---|---|---|---|
| Manufacturing base | Garments, electronics, wigs | Preserve GSP/GSP+ export value from Bangladesh | EPZ/SEZ entry — establish before LDC graduation (Nov 2026) | ★★★★★ |
| CEPA preparation | All bilateral exports | Post-graduation tariff protection framework | Engage in KOTRA-CEPA feasibility consultation; build trade record | ★★★★ |
| Infrastructure | Power, transport, telecom | MDB-financed mega projects ($5B+ pipeline) | KOTRA tender tracking + local partner JV for ADB/JICA tenders | ★★★ |
| Consumer goods | K-food, cosmetics, household | Middle-class expansion (80M consumers by 2030) | Local distributor network + K-brand awareness investment | ★★★ |
| Digital and fintech | IT services, fintech, e-commerce | Bangladesh digital economy growth (IT exports +28%) | Fintech licensing via Bangladesh Bank sandbox + IT service export | ★★★ |
Macroeconomic Stabilization Signals
Macroeconomic Stability Indicators
Exchange RateBDT 117/USD — down from 122 peak, stabilizing
Inflation7.5% — sustained downward trend from 9.8% peak
FX Reserves$23B — improving from $20B floor
Current AccountImproving via remittance inflows ($21B+ annual)
Investment Environment Signals
FDI$2.1B (Jul-Nov FY26) — pipeline driven
Capital Goods Imports$8B +12% — active investment cycle
GDP Forecast6.5% revised upward — growth resilient
Credit Rating OutlookStable — IMF program compliance maintained
D-365 Countdown: LDC Graduation Timeline
Bangladesh LDC Graduation Milestone Timeline
Nov 2025
GSP confirmed, GSP+ application submitted, CEPA review launched (D-365)
→↓
2026 Q1
U.S. GSP takes effect (Jan), CEPA joint committee formed
→↓
2026 Q2
MFN tariff reform finalized, industrial protection strategy published
→↓
2026 Q3
TRIPS pharmaceutical transition legislation enacted
→↓
Nov 2026
Official LDC graduation — preference schedules begin transitioning
November 2025 concentrates several historic shifts in Bangladesh's trade and investment environment: confirmed GSP, EU GSP+ application, Korea-Bangladesh CEPA review, and new economic zone designations. With LDC graduation precisely one year away, Korean companies that establish manufacturing footholds, distributor networks, or infrastructure partnerships now will be best positioned to maintain competitive access as the trade preferences transition. The window for optimal entry is narrowing — concrete action in the next 12 months is essential.
August 2025 Issue Monitor Round 6Follow-up on U.S.-Bangladesh trade negotiations and major issues through August
June-July 2025 Issue Monitor: U.S.-Bangladesh Trade Talks SpecialAnalysis of U.S.-Bangladesh trade negotiations and the process behind GSP reinstatement
Bangladesh Economy 2025 OverviewFull macroeconomic context for understanding Bangladesh's growth trajectory
Issue MonitorLDC graduationGSPGSP+CEPAeconomic zonesKorea strategyNovember 2025
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