DHAKA: Waves of neo-protectionism, especially in the world’s biggest economy — the United States — come as a matter of grave concern for Bangladesh as economists say it may hit hard the country’s export trade.
According to leading economists, the government should take the matter seriously with its policies to circumvent any unwanted situation in the economy.
The protectionist rhetoric from the White House since President Donald Trump took office has rattled many developing economies that are dependent on merchandise export to the United States.
Protectionism is an economic policy of restraining trade between states or countries through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations.
Protectionist policies protect the producers, businesses and workers of the import-competing sectors in a country from foreign competitors.
Dr Ahsan H Mansur said that the issue was raised by the economists and broadly discussed in a recent meeting which actually was organised for consultation with the country’s leading economists and professionals on the preparation of the next budget.
“Our export may be hit hard if the USA advocates a strong protectionism considering the interests of its economy,” the economist said.
Executive director at Dhaka-based ERG (Economic Research Group) Dr Sajjad Zohir sees many early signs of protectionism in many major economies, including the USA.
Dr Zahid Hussain, lead economist at the Dhaka office of the World Bank, said if the USA imposes higher tariffs on its imports, then Bangladesh will be victimised.
The World Bank economist, however, suggests that Bangladesh should now consider how to raise its competitiveness to survive amid such higher barriers to trade.
However, the London-based Financial Times in its recent issue said the European Union may sue the US at the WTO if it imposed a controversial border-adjustment tax.
Trump signed an executive order withdrawing from the Trans-Pacific Partnership (TPP), a trade agreement among 11 Pacific-rim countries that has not been ratified by Congress. The move, however, came as a blessing in disguise for Bangladesh as the country had remained outside the partnership.
Dr Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue, said the world is now passing through many challenges as many counties are taking protectionist measures.
After the meeting, Muhith told newsmen that he also believes that the protectionism has apparently been growing in many major countries — the USA, France and the United Kingdom.
