International Trade Working Paper

The International Trade Working Paper series promptly documents and disseminates reviews, analytical work and think-pieces to facilitate the exchange of ideas and to stimulate debates and discussions on issues that are of interest to developing countries in general and Commonwealth members in particular. The issues considered in the papers may be evolving in nature, leading to further work and refinement at a later stage.


Bangladesh's Apparel Exports to the EU

Adapting to Competitiveness Challenges Following Graduation from Least Developed Country Status

This paper focuses on the EU market to analyse the potential implications of LDC graduation for Bangladesh's apparel exports. By using a partial equilibrium model, it estimates that discontinuing tariff preferences could lead to a potential export loss of more than US$1.6 billion. While the methodological approach employed in this paper has certain caveats, there is no denying that terminating duty-free access in the EU, resulting in a tariff hike of 9.6 per cent, will put serious pressure on Bangladesh's export competitiveness. This paper gathers several buyers and exporters' perceptions to provide insights into the issues and offers some broad recommendations to mitigate any adverse effects.


Keywords: EU, export, apparel industry, Bangladesh, Least Developed Countries
JEL: L67: Industrial Organization / Industry Studies: Manufacturing / Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment; O19: Economic Development, Innovation, Technological Change, and Growth / Economic Development / International Linkages to Development; Role of International Organizations; F13: International Economics / Trade / Trade Policy; International Trade Organizations
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