Bangladesh must seek alternative export destinations over the next five years to insulate its economy from mounting uncertainty in the global trade environment, senior economist and Centre for Policy Dialogue (CPD) Chairman Rehman Sobhan has said.
Speaking on Thursday (17 April) at a policy dialogue in Dhaka, Sobhan stressed the need to diversify export markets in the wake of the trade policy uncertainties stemming from the United States, particularly those linked to the return of Donald Trump's tariff-driven economic doctrine.
"The US is Bangladesh’s single largest export destination. With such volatility looming, we must not only expand our market in the European Union but also identify alternative destinations," Sobhan asserted.
"Escaping the shadow of Trump-era protectionism is imperative."
The discussion, held at a city hotel, was organised by CPD and focused on the repercussions of retaliatory tariffs imposed under the Trump administration and their impact on Bangladesh.
CPD Fellow Mostafizur Rahman presented the keynote paper, with CPD Executive Director Fahmida Khatun moderating the session.
Citing 2024 trade data, Rahman noted that while Bangladesh paid $180 million in import duties on goods from the US, Washington collected a staggering $1.27 billion in tariffs on Bangladeshi exports.
“Removing tariffs on the top three US export items to Bangladesh would require us to extend the same benefits to other countries under WTO rules, resulting in an estimated $170 million in tariff losses,” he warned.
“So merely cutting duties is no silver bullet.”
Rehman Sobhan added that the epicentre of Trump’s trade crusade remains China, and how that geopolitical rivalry evolves will determine the global economic climate.
"In the meantime, we must amplify our competitive edge in the EU, where duty-free access remains for a few more years. Simultaneously, we should explore opportunities in Canada, Australia, Japan and across Asia—the emerging axis of global growth over the next quarter-century."
Contributing to the discussion, former Bangladesh Tariff and Trade Commission member Mostafa Abid Khan underscored that the current tariff landscape is not reciprocal.
“Whatever our response, it may have limited effect. The key is to understand US expectations and continue dialogue,” he said.
He suggested that while lower tariffs might not automatically increase US imports to Bangladesh, exploring a Free Trade Agreement (FTA) with Washington could offer a more viable route forward.
