Home / Knowledge / News / Apparel/Garments / WTO reviews Bangladesh's trade policies & practices
WTO reviews Bangladesh's trade policies & practices
18
Oct '12
The fourth review of the trade policies and practices of Bangladesh takes place on 15 and 17 October 2012. The basis for the review is a report by the World Trade Organization (WTO) Secretariat and a report by the Government of Bangladesh.

Summary

The Bangladesh economy emerged relatively unscathed from the global economic crisis though the country remains vulnerable because its exports are not diversified and it depends heavily on migrant workers' remittances.  Although the economy has become increasingly open in recent years, total merchandise exports have remained limited, averaging 18% of GDP since 2006. 

Exports remain highly concentrated both in terms of products and destinations, which carries some risk, with readymade-garment (RMG) exports to the EU and the U.S. the current mainstay.  However, as a reputable low-cost producer of garments, Bangladesh has gained global market share in recent years. 

This trend is expected to continue over the medium term, which could partially mitigate the impact of slow growth in advanced economies. 

Economic Developments

The average annual real GDP growth of the Bangladesh economy during the last six years was over 6%, aided by conducive macroeconomic policies, strong export growth and favourable weather.  GDP growth was broad based with agriculture, industry and service sectors performing well. 

According to preliminary estimates, GDP growth in FY2012, although still estimated to be over 6%, has slowed slightly. The performance of exports, a key growth driver, has declined as the year has progressed, largely due to weaknesses in Bangladesh's key market, the EU. 

Click here to read more summary:

Outlook

Bangladesh has enjoyed robust growth during the review period and, given its inherent strengths - especially a vibrant private sector and a large pool of inexpensive labour - the prospects for continuation of such growth are relatively good.  Unit labour costs in the dominant garment industry are well below those of the nearest competitors. 

Foreign investors are showing interest in large-scale relocation of labour-intensive industries, particularly garments and related textile manufacturing.  In addition, sectors such as shipbuilding, pharmaceuticals, ceramics, and processed and frozen foods have shown dynamism in recent years.

Although the outlook appears optimistic, both RMG exports and remittances are vulnerable to shocks:  external demand with garments, domestic labour unrest, and changes in market access;  and remittances from changes in labour regulations and  policies, or shocks in Kuwait or Saudi Arabia, which absorb over half the migrant Bangladeshi population. 

Deterioration in the outlook for both could cause significant external pressure, particularly as FDI flows remain low by mostmeasures, constrained by the trade regime, poor infrastructure, governance problems and a difficult business climate.  Longer-term growth prospects hinge on generating sufficient resources to relieve infrastructure bottlenecks and ensuring a competitive business environment focused on labourintensive activities.  

World Trade Organization (WTO)


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search