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

Pic: Shutterstock

Apparel/Garments | On 22nd Jan 2021

Bangladesh apparel exports decline 2.99% in H1 FY21

Readymade garment exports from Bangladesh declined by 2.99 per cent...

Pic: PRNewsfoto/Goat Group

E-commerce | On 22nd Jan 2021

Groupe Artemis makes strategic investment in Goat Group

Goat Group, the global platform for the greatest products from the...

Pic: Citi Trends

Retail | On 21st Jan 2021

Citi Trends to open 100 new stores by fiscal 2023-end

Citi Trends, Inc, a US-based value-priced retailer of fashion...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Money never disappears-it just finds new opportunities

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchains will be in heavy use by early adopters by 2025

Headhonchos, Indian fashion industry

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Tejas N Patel, Navin D Patel,

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Jash Choraria,

Jash Choraria

Established in 2015 by <b>Jash Choraria</b>, Unifynd is a Mumbai-based...

Saad Khaled Bari,

Saad Khaled Bari

Benetex Industries is a public ltd company established in year 1992 to...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll
Lenzing

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

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

Leave your Comments


January 2021

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


Advanced Search