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Bangladesh can gain from US-China trade war: experts

Jul '19
Pic: Shutterstock
Pic: Shutterstock
Bangladesh has to adopt the latest manufacturing technology, especially in the apparel sector, and initiate steps to negotiate tariff rates to take advantage of the ongoing US-China trade war, according to economists, researchers and business leaders who attended the annual general meeting of the International Business Forum of Bangladesh (IBFB) in Dhaka recently.

To take advantage of the trade war, there is no alternative but to opt for next level of automation and produce value-added goods for higher export income, research director of the Policy Research Institute M A Razzaque told the meeting.

Bangladeshi apparel manufacturers are now enjoying some extended export orders, primarily because of China’s phasing out from low-end manufacturing and shifting of many factories to neighbouring countries, Bangla media reports quoted Razzaque as saying.

Extended export orders are quite different from securing strong gains through diverted investments and foreign direct investment that are critical for export growth and diversification, he said.

If the United States imposes 10 per cent additional duties on Chinese apparel, Bangladesh's apparel exports to the US may rise by 11.32 per cent, he said. A 25 per cent duty by the United States will lead to a 30 per cent rise in Bangladesh’s apparel exports to the United States, he added. (DS)

Fibre2Fashion News Desk – India

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