Bangladesh is currently grappling with a significant trade crisis due to its failure to maintain a balanced commercial relationship with the world’s major economic powers. Policy missteps by the interim government, coupled with domestic political tension and international instability, have deepened this predicament. The upcoming graduation from the Least Developed Country (LDC) status in 2026, along with export limitations, is further exacerbating the threat to the nation’s economic stability.
According to industry insiders, while relations with China appeared promising following the recent mass uprising, Beijing has since adopted a more cautious stance. Notably, China has yet to provide any written assurance regarding the continuation of duty-free access for Bangladeshi products after the LDC graduation. Simultaneously, ties with India have hit a stalemate following recent political shifts. Obstacles in cross-border land trade have forced Bangladesh to import essential commodities like rice from Singapore at a much higher cost, placing an additional burden on the domestic economy.
Complications have also arisen regarding the proposed Economic Partnership Agreement (EPA) with Japan. Tokyo is demanding the same level of concessions and facilities that Bangladesh has recently granted to the United States. Furthermore, the European Union is exerting immense pressure over the procurement of aircraft. Following a commitment to purchase Boeing planes from the US, European representatives are insisting that Bangladesh honour its previous pledge to buy Airbus aircraft. The German ambassador has warned that any reversal of this decision could jeopardise Bangladesh’s future eligibility for the GSP Plus trade facility.
Dr M.K. Mujeri, former Director General of the Bangladesh Institute of Development Studies (BIDS), noted that the interim government’s hurried decisions might leave a lasting negative impact. He warned that failing to maintain a sophisticated and neutral trade policy would not only cripple the current economy but also place future administrations in a strategic bind. Experts suggest that a more professional and far-sighted diplomatic approach is essential to restore international confidence and safeguard the nation’s commercial interests.
GLIVE/TSN