New Delhi: Bangladesh is having a tough time keeping up its trade ties with the world’s biggest economies. The interim government led by Muhammad Yunus has made a number of policy blunders, which, coupled with business disruptions and domestic economic turmoil, has made the country’s trading prospects even shakier, says a piece in the Daily Sun.
The loss of its “least developed country” (LDC) status means Bangladesh will no longer enjoy the special trade perks that are reserved for poorer nations, making it more exposed to market swings.
At first glance, the July regime change seemed to boost connections with China, Bangladesh’s biggest trading partner. However, after hitting agreements with the United States, China has become more cautious in its dealings with Dhaka, the article notes. While Beijing has promised to keep tariff breaks once Bangladesh leaves LDC status, it has yet to put those assurances in writing.
The story also points out that the interim administration has had a hard time smoothing out trade relations with India, the country’s second‑largest trading partner. Since taking office, there have been standoffs over a range of issues, including trade limits on certain goods that are shipped over land, which have slowed bilateral trade.
As a result, Bangladesh now faces higher prices for key imports such as rice, which it used to get from India, and has had to buy them from Singapore instead.
On the Japanese front, Tokyo is pushing for the same trade concessions that were offered to the U.S., complicating a possible Economic Partnership Agreement with Bangladesh. Japan wants high import tariffs on vehicles reduced, citing the U.S. deal as a reference point.
The article further reports that the European Union, Bangladesh’s most reliable trade partner, has expressed worry. Bangladesh has pledged to boost imports—including big purchases of Boeing planes and LNG—in order to secure tariff advantages under a reciprocal trade deal with the U.S. This has sparked pressure from Europe, especially since Bangladesh had already committed to buying ten Airbus jets from France.
The EU is now insisting that the country stick to its earlier commitment, warning that a breach could jeopardise GSP Plus benefits now that Bangladesh has left LDC status. Germany’s ambassador also made a subtle warning at a recent DICAB event.
Experts argue that the combined demands and conditions from major trading partners and development allies pose a real threat to Bangladesh’s international trade.
The article cites MK Muzeri, former director‑general of the Bangladesh Institute of Development Studies (BIDS), who said the interim government made several mistakes that not only imperil trade but could also burden the next elected administration.
The former Chief Economist of Bangladesh Bank added, “The agreement reached with the United States will shape Bangladesh’s trade landscape for the long haul. Other countries may now set similar conditions to secure comparable gains. Most of our export revenue comes from Europe. If complications arise with Airbus procurement, European nations will naturally react. The interim government should not have rushed into these long‑term deals without consulting businesses and entrepreneurs.”
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