Bangladesh’s graduating to a developing nation is going to hit exports hard as the country is expected to lose around US $ 7.0 billion worth of export earnings annually after the graduation.
As per estimates, Bangladesh is expected to attain the developing nation’s status in 2024.
The loss of preferences in the markets of European Union (EU), Australia, Canada, China, Japan, and India in 2024 might lead to an annual reduction in the total export of Bangladesh by 11 per cent or equivalent to around US $ 7.0 billion as per current projection of export growth, underlined the vision paper prepared by the state-run General Economics Division (GED) based on the simulation results from the global dynamic general equilibrium model.
The newly framed Perspective Plan 2021-2041 (PP2041) made the projection.
Even though LDC graduation would improve Bangladesh’s image and rating for attracting FDI (foreign direct investments), but it will have some risks underlined the GED’s vision paper, which went on to add that the country would lose the preferential trade benefits in its largest apparel export destination, the EU.
Also, will be unavailable many of the exemptions of WTO provisions, including cut in tariff and subsidies, it said while adding that adherence to intellectual property rights (especially for the pharmaceutical sector) will also be unavailable after 2024, except for the EU, which would allow a transition period of 3 years, up to 2027.
