Bangladesh’s exports could take a hit subsequent to the country graduating from the league of Least Developed Country (LDC) as the country would cease to get trade benefits and there would be a substantial increase in tariffs.
This was underlined in a recent study conducted by the Bangladesh Enterprise Institute (BEI), according to which the country would have to pay 9.5 per cent tariff to European Union, which is its largest destination for apparel exports, after the LDC transition.
Further, after the transition, for Canada the tariff rate would be 17 per cent, 16.2 per cent in China, 8.71 per cent in Japan and 8.61 per cent in India, where Bangladeshi exporters enjoy duty-free benefit.
Loss of privilege is a major concern for Bangladesh as after LDC graduation, tariffs on exports in major markets will go up, maintained a consultant of BEI, MA Razzaque.
The Dhaka-based independent thinktank (BEI) projected that losses could go up to as high as 9.8 per cent.
Meanwhile, UNCTAD estimated up to 7.5 per cent of export loss for Bangladesh in view of the transition, while as per a WTO study Bangladesh’s exports could decline by 14 per cent.
