Bangladesh’s exports to its biggest market, the European Union (EU), could shrink by 28-30 per cent after the transitioning into a developing country from the current status of a least developed country (LDC) consequent to suffering losses as the duty-free facilities under the everything but arms (EBA) will go away while also coming under the purview of the carbon border adjustment mechanism (CBAM).
Meanwhile, according to a study by the Research and Policy Integration for Development (RAPID), a research institute, of the loss in exports, apparels will also be hit, with the decrease for the segment expected to be around 27 per cent even as it said the export loss will be for China and Vietnam (less than 3 per cent) vis-a-vis Bangladesh.
It may be mentioned here EBA only applies to LDCs, while CBAM is a proposed carbon tariff on carbon intensive products imported by the EU being legislated as a part of the European Green Deal initiative.
