What does the evolving trade landscape imply for post-LDC apparel exports from Bangladesh?
Abstract:
While graduation from LDC status poses a threat to competitiveness due to the potential loss of tariff preferences in major markets, the evolving trade landscape could offer avenues for mitigating these challenges and enhancing export competitiveness. There are possibilities that preferences might be extended post-graduation in certain instances. Furthermore, Bangladesh’s significant scale as a global apparel exporter, underpinned by its extensive networks with international brands and economies of scale, distinctly positions it among its competitors. The country's current infrastructure and trade logistics present ample room for improvement, thereby offering opportunities to enhance export competitiveness. Moving up the value chain through the production of higher-value-added and man-made fibre-based apparel emerges as a strategic avenue to safeguard Bangladesh’s global standing in the apparel market. Importantly, LDC graduation does not necessarily imply the cessation of all trade preferences. Therefore, proactive engagements with trading partners to secure preferential market access remain crucial. This multifaceted approach, incorporating both immediate and strategic measures, is essential for effectively navigating the post-LDC landscape.