STAR BUSINESS REPORT

The US government has identified a lack of transparency in Bangladesh as a major obstacle to investment and raised concerns about labour rights.

The US Trade Representative (USTR) made this statement in its 2026 National Trade Estimate Report on Foreign Trade Barriers, published on Tuesday, which reviews trade issues in various countries.

The report said Bangladesh allows the repatriation of profits, revenue, dividends, and other external payments. However, US and other foreign investors have raised concerns that the procedures for transferring investment-related funds out of Bangladesh are complicated, lack transparency, and often cause long delays, with some companies waiting over a year for approval.

While Bangladesh generally permits 100 percent foreign ownership in most sectors, certain areas, such as petroleum marketing, gas distribution, and telecommunications, have limits on foreign equity.

Investors also need a No Objection Certificate (NOC) from relevant ministries to invest in 22 sectors, including banking, finance, insurance, power generation and distribution, large infrastructure projects, chemicals, and oil and gas.

LABOUR RIGHTS CONCERNS

The USTR expressed concern over labour rights in Bangladesh, particularly regarding the protection of internationally recognised rights, such as freedom of association and the effective recognition of collective bargaining.

Last year, during the interim government, Bangladesh amended its labour law to liberalise rules on freedom of association, following recommendations from the international community to meet global standards. Bangladesh also ratified all the required ILO conventions to modernise its labour laws.

Despite these changes, the US remains concerned about enforcement. Since suspending Bangladesh’s tariff benefits under the Generalised System of Preferences (GSP) programme in 2013, the US has repeatedly raised issues with freedom of association and acceptable