EU’s Anti-Dumping Duty Extension and Its Implications for Bangladesh’s Bicycle Industry
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Bicycle is Bangladesh's highest-exported light engineering (LE) product, accounting for 27.53% of the sector's exports in 2022. The global bicycle trade reached USD 11 billion in 2022, with Bangladesh contributing USD 155 million to that total. Major exporters of the global bicycle market include China, Taiwan, and Germany, collectively representing 60.24% of total trade. Among these, China dominates with the largest share, exporting 31.54% of the total. Government subsidies, a supportive ecosystem, and favorable trade policies aided China’s strong presence in the global bicycle exporting market. These measures gave China a competitive edge and created challenges for local manufacturers in European Union countries as well as for Bangladesh.
In 2022, European Union (EU) member countries accounted for 41% of total global bicycle import. Among Asian countries, Cambodia was a key supplier of bicycles to the EU. Among European countries, major suppliers included Germany, the Netherlands, Italy, and Portugal. Despite being a global manufacturer, China supplied only 3.21% of the EU’s total import value in that year. As many EU nations have domestic bicycle manufacturers and EU countries mainly import bicycles from other EU countries, the bloc has imposed anti-dumping duties on Chinese bicycles to protect their local industries. These duties support EU manufacturers and create more equitable trade opportunities for other exporters, including Bangladesh. In January 2025, the European Commission extended these anti-dumping and anti-countervailing duties on Chinese bicycle imports.
Bangladesh exports bicycles to several EU countries including Germany, Austria, Denmark, the Netherlands, Poland, Sweden, Ireland, Belgium, Spain, Slovenia, Finland, Slovakia, France, Italy, Greece, and Czechia. In 2022, Bangladesh’s bicycle exports to the EU amounted to USD 104.5 million, representing 67.4% of the country’s total bicycle export value. Among EU countries, Germany was the top destination for Bangladesh’s bicycle exports in 2022, accounting for 46% of Bangladesh’s total cycle export volume that year. To put in another way, in case of non-EU imports, Bangladesh was second to Taiwan in exporting bicycles for that particular year and China was third. Over many years in the past decade, Germany’s import share from Bangladesh has been higher or nearly equal to that of China. This means Bangladesh is already dominant in the German bicycle import market over China. With the help of this anti-dumping duty extension Bangladesh may continue to maintain this status quo in Germany.
Apart from Germany, Austria imported 5% of its total bicycle imports from Bangladesh in 2022, compared to only 0.07% from China. Historically, Bangladesh’s share in Austria’s bicycle import market has frequently exceeded that of China. Meanwhile, the Netherlands—renowned for its strong cycling culture and where bicycles are the second most popular mode of transport after walking—has over 24 million bicycles among its 18 million residents. In 2022, the Netherlands imported $799 million worth of bicycles, with Bangladesh contributing $4.45 million, while Chinese imports accounted for 10% of the total. In that same year, Sweden also imported 7.03% of its bicycles from China, while Bangladesh supplied 2.22%.
With Germany, Austria, and the Netherlands being major export destinations for Bangladesh, the continued imposition of tariffs on Chinese bicycles presents a significant advantage. The extended tariffs place Bangladesh in a favorable position to boost its competitiveness in the EU market and create opportunities to grow its market share and sustain bicycle export growth to the region.
In the absence of these duties, Chinese bicycles would become cheaper in the EU market, which would pose challenges for other countries, including Bangladesh. The anti-dumping duties on Chinese bicycles range from 10.3% to 70.1%, while countervailing duties range from 3.9% to 17.2%, depending on the exporting company. Without these duties, bicycle prices in the EU market could drop by 10-20%, which would make it harder for Bangladesh to compete, especially considering the higher export prices due to its reliance on imported parts. For example, if a Giant bike currently sells for €1,499 in Europe, without the duties, the price could be lowered to approximately €1,292. Additionally, Bangladesh enjoys favorable trade conditions under the EU's Generalised Scheme of Preferences (GSP), particularly through the Everything But Arms (EBA) arrangement, which grants duty-free and quota-free access for exports from Least Developed Countries (LDCs) like Bangladesh. This preferential treatment allows Bangladesh’s bicycles to enter the European market at competitive prices.
Furthermore, the European demand for e-cycles is rising due to their environmental benefits, making this segment a strong growth area. Notably, Bangladesh has recently begun exporting e-cycles to Germany, with Pran RFL making its first shipment in 2024. The company plans to expand its e-cycle exports to the UK and Brazil in the near future. As the culture of e-cycling strengthens, Bangladesh’s major cycle exporters can leverage the advantages of anti-dumping duties to enhance their competitive positioning in both the German and broader EU markets.
In summary, Bangladesh's bicycle export sector is well-positioned to expand, particularly with the continued anti-dumping duties on Chinese bicycles in major markets like the EU. Although currently Bangladesh’s cycle export value represents less than 2% of the global cycle trade share, this duty extension provides Bangladesh with an opportunity to capture a larger market share in these regions, despite its current reliance on imported components. With the growing demand for e-cycles and favorable trade policies in place, Bangladesh has the potential to become a prominent exporter of bicycles in the global market.
References:
The Atlas of Economic Complexity- Harvard University
