According to a recent report of the World Trade Organization (WTO) ahead of a review of the country’s trade policies, Bangladesh is risking serious economic problems by bestowing more than required concentration on clothing exports. The reports have warned that if the exports remain highly concentrated both in terms of products and destinations, the economy is headed towards serious problems considering the troubles being faced by the sector through continual demands of the workers for higher wages. The global clothing buyers have also expressed concerns over the labour woes of the country.
Bangladesh has enjoyed a robust growth in the segment with a vibrant private sector and a large pool of inexpensive labour, costing well below those of the nearest competitors. The report, however, added that the garment industry will remain the “largest contributor to growth in output for the foreseeable future” especially with the 2011 change in EU import rules, giving Bangladesh duty-free access.
In the meanwhile the IMF has downgraded Bangladesh’s growth estimation to 5.8% in 2012-13 fiscal due to sluggish exports and investment. However experts opined that the country may maintain its 6% plus growth by accelerated export performance in readymade apparels, leather products and increased expatriate remittance which is expected to be around $ 14 billion in the current year.
Quoting ICCB (the International Chamber of Commerce, Bangladesh), the IMF’s latest World Economic Outlook (WEO) projections, said 7.2% growth target set by the Bangladesh Government seems to be unachievable considering the global context coupled with basic deficiency in infrastructure and utilities such as gas and power.
Trade policy reviews are an exercise, mandated in the WTO agreements, in which member countries’ trade and related policies are examined and evaluated at regular intervals. Significant developments that may have an impact on the global trading system are also monitored. All WTO members are subject to review, with the frequency of review depending on the country’s size. Bangladesh has been a WTO member since 1 January 1995.
