View attachment 839040
View attachment 839044
This paper seems to highlight the effect of LDC status in helping Bangladesh develop its economy.
Bangladesh does not get GSP benefit in the US now - and per your diagram, will not from EU either after it graduates from LDC status. What it got in the past is no longer relevant - who cares?
"Everything but Arms" benefit for exports will also come to a close soon.
Diversification of exports is already in motion, the focused tariff policies (gradually enforced) to encourage export diversification in certain industries reflect that.
Diversification of exportables will only help reduce the post-GSP stage shocks to the export economy.
Already a massive collection of manufactured consumables and durable products are being produced locally, besides apparel. Bangladesh is self-sufficient in producing most locally-consumed items even some high-tech items like cellphones, tablets, laptops and almost the entire plethora of computer accessories.
For example - Indian motorbike assemblers in Bangladesh are now looking for and engaging local Bangladeshi parts suppliers to stave off tariff restrictions enforced for parts imported from India. Soon when local Bangladeshi parts content exceeds a certain limit to satisfy "rules of origin" then they can start exporting to more sophisticated markets other than Africa and local undeveloped Asian economies.
You have to remember -
1. Industrial operations sophistication in Bangladesh is not too far behind compared to that in India.
2. However Bangladeshi industrial wages are roughly half that of India at this time. In some sectors a lot less.
3. Bangladesh has far less red-tape in either producing or exporting products compared to India in terms of unionization, labor law etc.
You are a smart guy - you can figure out the rest.
