Bangladesh’s export sector will face tougher competition in the global market after losing duty-free market access and preferential trade benefits when it graduates from LDC status and officially joins the ranks of developing countries. However, once a developing nation, it will not be eligible for duty- and quota-free facilities and preferential market access. After graduation, Bangladeshi exporters will have to pay an additional 6.7% tariff, making competition against rivals, some of whom enjoy benefits under EU GSP Plus and preferential trade agreements, tougher. The United Nations Conference on Trade and Development estimated that Bangladesh may face an export decline between 5.5% and 7.5%. In terms of availing regional trade benefits, Bangladesh should remain engaged in the process of regional trade agreements, so that graduation does not hurt export earnings.

Source: Dhaka Tribune March 21, 2018 19:30 UTC