UN gives bad news to Bangladesh
The announcement of new import tariffs by US President Donald Trump will significantly increase the trade costs of many developing countries in the world. Due to this, developing economies like Bangladesh will be at risk of discrimination in global trade. At this time, the export potential of developing countries will decrease in the garment and agricultural sectors.
This information has emerged in a UN report.
In a global trading system that has remained unchanged for almost a century, Bangladesh’s growing economy is facing a major setback due to Trump’s tariffs. However, even if the 90-day moratorium on the implementation of tariffs gives some wind to the economy, there is a possibility of long-term damage.
This was indicated in the report ‘Sparing the Vulnerable: The Cost of New Tariff Burdens’ published by the United Nations Trade and Development Agency, UNCTAD, on Thursday (May 23).
The report said that although developing countries like Bangladesh are responsible for only 0.3 percent of the US trade deficit, the new tariff policies of these countries are increasing the export costs. As a result, entering the US market will become difficult. Export prospects will decline, especially in sectors such as clothing and agricultural products.
Although the United States has imposed a 10 percent general tariff on imports, additional country-specific tariffs will come into effect in July. This could increase import tariffs for countries like Bangladesh to 44 percent, which could put the economies of the countries at risk, the report predicts.
In this situation, international cooperation, tariff relief policies, and ensuring easy market access for developing countries are essential, the report states. Otherwise, new types of discrimination may be created in world trade, which may hinder global development in the long run.
Meanwhile, the National Board of Revenue is going to propose tariff exemptions on 100 US products in the upcoming budget to strengthen bilateral trade with the United States and reduce high tariffs on Bangladeshi products in the country’s market.
