Implications of Bangladesh's LDC Graduation on its Apparel Exports to the EU: Challenges and Mitigation Strategies
Author
Hossain, Sabbir
Term
4. Semester
Publication year
2024
Submitted on
2024-10-13
Pages
62
Abstract
This thesis analyzes how Bangladesh’s planned graduation from least developed country (LDC) status will affect its apparel exports to the European Union, a market that is central to the country’s export earnings and employment. Combining primary interviews with industry stakeholders and a review of secondary literature, the study addresses three issues: the challenges expected from the loss of tariff preferences, practical strategies to mitigate these challenges, and the broader economic and social implications of a more diversified export base. Interview evidence points to reduced price competitiveness in the EU as duty-free access wanes and tariffs rise, with risks of lower orders and intensified competition from regional producers. Respondents highlight mitigation options such as market and product diversification to spread risk, technology adoption and upgrading to improve productivity and compliance, and joint ventures to access capabilities and markets. Corroborated by secondary sources, the findings stress the pivotal role of government in negotiating favorable trade arrangements and providing targeted support during the transition. The study concludes that close cooperation between industry and policymakers will be crucial to sustain export growth and macroeconomic stability after graduation, offering insights for other emerging economies navigating trade preference changes in the global apparel sector.
Dette speciale undersøger, hvordan Bangladeshs planlagte graduering fra status som mindst udviklet land (LDC) kan påvirke landets beklædningseksport til EU, et marked der er centralt for landets eksportindtægter og beskæftigelse. Med en kombination af primære interviews med brancheaktører og gennemgang af sekundær litteratur belyser studiet tre spørgsmål: de udfordringer, der forventes ved bortfald af toldpræferencer, praktiske strategier til at afbøde disse udfordringer og de bredere økonomiske og sociale konsekvenser af en mere diversificeret eksportbase. Interviewene peger på svækket priskonkurrenceevne i EU, efterhånden som toldfri adgang udfases og tariffer stiger, med risiko for lavere ordrer og skærpet konkurrence fra regionale producenter. Respondenterne fremhæver afbødningsmuligheder som markeds- og produktdiversificering for at sprede risiko, teknologiintegration og opgradering for at styrke produktivitet og efterlevelse samt joint ventures for at få adgang til kompetencer og markeder. Understøttet af sekundære kilder understreger resultaterne regeringens centrale rolle i at forhandle gunstige handelsordninger og tilbyde målrettet støtte i overgangsperioden. Studiet konkluderer, at tæt samarbejde mellem industri og beslutningstagere bliver afgørende for at fastholde eksportvækst og makroøkonomisk stabilitet efter gradueringen og giver indblik, der kan anvendes af andre fremvoksende økonomier i den globale beklædningssektor.
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