Bangladesh Faces Major Threats in Global Trade

Bangladesh is now facing significant risks in global trade due to its inability to maintain balanced commercial relations with major economic powers. Policy missteps by the interim government, political tensions, and global instability have intensified the crisis. Challenges arising from LDC graduation, internal economic pressure, and the fragile export sector have further deepened the threat.

According to stakeholders, relations with China appeared strong initially after the post-uprising political transition, but Beijing became cautious after Bangladesh reached a trade understanding with the United States. China has yet to provide written assurance about continuing tariff facilities after LDC graduation. Political shifts and restrictions on land-route trade have also stalled bilateral relations with India, forcing Bangladesh to import rice from Singapore at higher prices.

Trade complications are increasing with Japan as well, as Tokyo demands similar facilities to those offered to Washington. As a result, the proposed Economic Partnership Agreement (EPA) remains uncertain.

The biggest pressure is coming from the European Union. After Bangladesh pledged to purchase Boeing aircraft to strengthen ties with the United States, Europe has increased pressure to honour the earlier commitment to purchase Airbus planes. The German ambassador has cautioned that any deviation could jeopardise Bangladesh’s potential GSP+ benefits.

Former BIDS Director General M K Mujeri has said that the interim government’s rushed decisions could jeopardise not only current trade but also burden future administrations.

Source: bd protidin

Khaborwala/TSN