The World Trade Organisation (WTO), in a recent report, underlined that Bangladesh and the countries that come under the category of the least developed countries (LDCs) this year could witness a significant fall in their export earnings.
This is primarily because of the dependence on a limited number of markets (export destinations) and product categories.
What’s even more significant from Bangladesh’s perspective, it’s five principal markets of USA, France, UK, Spain and Germany have been severely impacted by coronavirus, which could have an adverse bearing on the country’s export receipts in 2020.
According to reports, Germany accounts for around 15.1 per cent of Bangladesh’s total exports with USA following with 13.8 per cent share, Spain 7 per cent, France 6.8 per cent and UK 8.1 per cent.
The COVID-19 pandemic now threatens to derail the LDC’s hard-won development gains maintained the WTO report adding that the supply chain disruption and declining demands are weighing against exports from the LDCs, especially the textile and apparel exports.
Also, brands and retailers in these export destinations have already started to file for bankruptcy protection,which could further complicate the suppliers’ problems from the LDCs as the contracts that have been signed already now run the risk of getting cancelled, the WTO report underlined.
