Uncertainty in global trade poses risks for Bangladesh: Experts

Highlights

• Global trade system increasingly uncertain, experts warn
• WTO rules losing effectiveness, complicating negotiations
• Trade talks shifting from rules-based to power-based
• Bangladesh forms Trade Negotiation Pool, strengthens capacity
• It starts trade negotiations with partners thru FTAs, others
• LDC graduation demands skilled negotiators, strategic planning

Growing uncertainty in the global trade system, coupled with the weakening effectiveness of World Trade Organization rules, could complicate future trade and negotiations for countries like Bangladesh, experts warned at a dialogue today (7 September).   

They also underscored the urgency of strengthening Bangladesh's trade negotiation capacity to safeguard national interests post-LDC graduation.

During the dialogue, titled "Reflections and Way Forward: Building National Capabilities in Trade Negotiations", they emphasised that building a skilled pool of trade negotiators is vital to sustain exports, diversify markets, and protect Bangladesh's interests in an increasingly competitive global trading system.

Commerce Adviser Sk Bashir Uddin spoke as chief guest at the dialogue. Photo: Courtesy

Previously, trade negotiations followed WTO rules and many other practices, said Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID). "Now the negotiations sometimes can be rather power-based, than rules-based."

The commerce ministry organised the event with support from the United Nations Development Programme (UNDP), under the Transformative Economic Policy Programme (TEPP), financed by the UK Government's Foreign, Commonwealth and Development Office (FCDO).

"We are seeing a trade environment that is becoming more complex and political," Razzaque said, adding, "We have seen that the entire global multilateral trading system has weakened… and the protection mechanisms for some countries, like Bangladesh, have been compromised."

Photo: Courtesy

Bangladesh is set to graduate from the group of Least Developed Countries (LDCs) in 2026. To ensure a smooth transition, the country has begun trade negotiations with various partners through Free Trade Agreements (FTAs) and other arrangements. 

The Ministry of Commerce has recently formed a "Trade Negotiation Pool" for this purpose.

Commerce Secretary Mahbubur Rahman said that negotiations are currently underway with Japan, South Korea, and Singapore. 

Photo: Courtesy

Addressing the event as the chief guest, Commerce Adviser Sk Bashir Uddin said, "As Bangladesh prepares to graduate from LDC status, the Trade Negotiation Pool will be vital in equipping our negotiators to secure the nation's interests in a complex global trade landscape."

Lutfey Siddiqi, chief adviser's envoy for international affairs, said, "Trade negotiations cannot be approached casually. They demand institutional change, specialist expertise, authority, and continuity to succeed."

Photo: Courtesy

Sarah Cooke, British High Commissioner to Bangladesh, reaffirmed the UK's partnership. "The UK is proud to support Bangladesh to build a new generation of trade negotiators, and we remain firmly committed to supporting its journey toward a modern, inclusive economy."

Stefan Liller, resident representative of UNDP Bangladesh, said Bangladesh's graduation is "a call for an economic reset," adding, "Bangladesh must craft a new generation of trade and investment strategies, negotiate favourable agreements, and defend its interests in global forums."

Photo: Courtesy

Other participants included Md Abdur Rahim Khan, additional secretary (export wing), Ministry of Commerce, and Owais Parray, country economic adviser, UNDP Bangladesh.