World: what the demo trade pact between two neighbours means for Bangladeshi exporters
Lower tariffs between two large markets could divert some orders. Here is the exposure by sector.
Key points
- The pact cuts tariffs on textiles and leather between the two signatories.
- Bangladeshi exporters compete with both in European and North American markets.
- Analysts quoted in the demo report expect a small effect in year one.
What was signed
The two neighbouring economies signed a demo trade pact lowering tariffs on textiles, leather goods and processed food between them.
Why it matters here
Bangladeshi exporters compete with both signatories in third markets. Cheaper inputs for their factories could sharpen that competition.
What the analysts say
The demo report quotes analysts expecting a small effect in the first year and a larger one if rules-of-origin thresholds are relaxed later.
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