Halting US Imports Raises Concerns as Bilateral Trade Thrives

Bangladesh is set to revamp its export-import trade landscape with a proposed law, 'The Import and Export Act 2024,' aiming to modernize the sector. The new law, replacing the outdated Import and Export (Control) Act 1950, includes the services sector and introduces the concept of a one-person company as a business entity.

Japan has provided approximately $2 billion in financial assistance to Bangladesh, making it the top contributor. However, bilateral trade faces challenges as Bangladesh exports goods worth $135 million but imports $277 million from Japan.

Bangladesh and India aim to conclude negotiations on a Comprehensive Economic Partnership Agreement (CEPA) by 2026, seeking to enhance their strategic cooperation. The discussions during a recent foreign-office consultation in Delhi emphasized CEPA as a mechanism to address post-graduation trade challenges for Bangladesh.

South Korea, acknowledging Bangladesh as a vital development partner, has contributed over USD 200 million in grants and USD 1.7 billion in concessional loans. The Chief South Korean Ambassador in Bangladesh announced a new framework agreement facilitating an additional $3 billion in concessional loans from the Economic Development Cooperation Fund (EDCF) for 2023-2027.

The Bangladesh economy grapples with a new wave of challenges, exacerbated by the Covid-19 pandemic and the Russia-Ukraine war. A 35% devaluation of the taka and a surge in commodity prices further strain the economy. Ongoing political unrest, marked by hartals (strikes) and blockades ahead of national elections, disrupts key sectors.

The ongoing conflict between the Arakan Army and Myanmar's military junta in the Rakhine state has halted bilateral trade between Bangladesh and Myanmar through the Teknaf land port since November 14. This disruption is causing the Bangladeshi government approximately Tk 3 crore in daily revenue losses, accumulating to over Tk 15 crore.