Staff Reporter :
Bangladesh is severely underutilizing its potential for Asian regional trade, as less than 5 percent of its total exports are directed towards India and China.
Despite the fact that global exports to China and India amount to around $4,050 billion annually, Bangladesh’s exports to these countries were only $2.64 billion in 2022, according to a recent study led by Atiur Rahman, former governor of Bangladesh Bank.
Rahman’s study, titled “Post-LDC Graduation: Opportunities, Challenges, and the Way Forward,” highlights Bangladesh’s low export volumes to other Asian countries like South Korea and Japan.
He pointed out that Bangladesh has yet to tap into 40-60 percent of its export potential with Southeast Asian and ASEAN nations.
The findings were presented by Rahman at a luncheon meeting of the American Chamber of Commerce (AmCham) in Bangladesh, held at a city hotel in the capital.
The study also projected that Bangladesh, which is set to graduate from the least developed country (LDC) category in November 2026, will face challenges such as losing its most-favored nation (MFN) tariffs and duty-free market access to partner countries. This change could potentially reduce the country’s baseline exports by 7-14 percent.
In addition to the challenges posed by the loss of MFN tariffs and duty-free market access, Bangladesh will also have to comply with stringent Rules of Origin for exports, particularly in the pharmaceutical sector, to meet trade-related intellectual property rights (TRIPS) obligations, according to Atiur Rahman’s study.
Rahman recommended the continuation of cash incentives on export receipts for as long as possible, asserting that various export sectors need time to stabilize amidst volatile global economic conditions.
He suggested that the government should consider increasing these incentives if feasible. Furthermore, Rahman urged the government to take several measures including stabilizing the exchange rate, containing inflation, promoting export diversification (both in terms of products and destinations), and enhancing remittances.
He stressed the importance of maintaining consistency in the capital market and prioritizing human capital development through stronger private sector collaboration with academia and other training providers.
At the AmCham event, Md Humayun Kabir, additional labour secretary, highlighted findings from a research panel discussion on “Development of Labour Conditions in Bangladesh for Sustainable Growth.” Kabir mentioned that Bangladesh has ratified 36 ILO (International Labour Organization) conventions and Protocol 29 on forced labour, including 8 out of the 10 fundamental conventions. In 2022, Bangladesh ratified ILO Convention 138 concerning minimum age for entry into work and the Protocol 2014 on forced labour convention.
Kabir also noted the implementation of a roadmap on labour rights for 2021 to 2026, emphasizing that Bangladesh is making significant efforts to enforce these conventions through legal and administrative reforms and promotional activities.
Particularly, since 2013, Bangladesh has made remarkable progress in ensuring labour rights and workplace safety in the country which has been recognised globally, he said.
