Bangladesh to lose $6.38 bn in exports after LDC graduation: Study

The study, involving data from the World Trade Organisation (WTO), on five major export destinations of Bangladesh was presented by former member of Bangladesh Tariff Commission Mostafa Abid Khan at a seminar organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).

Apart from the EU, Bangladesh will lose $5.36 million, or 42.05 per cent of business to Canada, where its exporters will have to face 14.47 per cent duty, Khan said.

Similarly, the country will lose $388.12 million, or 30.53 per cent of exports to Japan, where exporters will face 8.89 per cent duty in the post-LDC period.

The country will face 7.94 per cent duty and lose business worth $87.78 million, or 27.53 per cent of the total annual export to Korea.

In China, there is a possibility of losing $76.55 million, or 8.29 per cent of total exports because of 2.96 per cent duty on Bangladeshi goods. In New Zealand, exporters will have to face 4.62 per cent duty and lose $10.13 million, or 11.9 per cent of annual exports, the study said.

The country should replicate its successful readymade garment (RMG) model in all other sectors, allowing them to become competitive enough to absorb challenges arising after the country graduates from the least developed country (LDC) status in 2026, business executives and economists said.

They also underscored the need for raising productivity and developing human capital quickly to avert possible setback after the graduation, according to Bangladeshi media reports.

Fibre2Fashion News Desk (DS)