On joining the big league of developing nation from the current status of a LDC (least developed country), Bangladesh will face strong competition in garment shipment to its export stronghold of the European Union (EU) even if the country will lose a 12 per cent duty benefit, while its closest competitor Vietnam will enjoy zero duty benefit on account of signing a free trade agreement (FTA).
The distinguished fellow of the Centre for Policy Dialogue (CPD) Mustafizur Rahman, reportedly, maintained this while underlining Bangladesh will face overall disadvantage of nearly 22 per cent to 23 per cent in duty to the EU even as he went on to maintain that Vietnam will also enjoy duty benefits to other major markets like USA, Canada and Australia vis-à-vis Bangladesh since it is a member of a Trans-Pacific Partnership (TPP) Agreement while also having inked a Regional Comprehensive Economic Partnership (RCEP) agreement.
The CPD distinguished fellow came up with the observations while taking part in a discussion titled ‘Dealing with the aftermath of Covid-19 Adjustments and Adaptation Efforts of the Apparel Workers in Bangladesh’, organised by Christian Aid and the Nagorik Platform even as he added that there is as such scope for limitations to come about for the apparel industry of Bangladesh in the next seven to eight years unless the Government takes up necessary action plans for business horizon expansion.
