Will an India-US trade agreement have any impact on Bangladesh?
If the tariff difference between Indian and Bangladeshi products in the US is limited to about 5 percent, there will not be much of an immediate negative impact. Rather, they believe that if India's exports to the US increase, it could provide some relief for Bangladesh in the European market. However, they warn that if this tariff gap persists in the long term, India may increase its investments in its backward and forward linkage sectors, i.e., in materials production and supply chains; which will create tough competition for Bangladesh in the future.
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