Experts fear that the trade war between the US and Asian superpower China could have a negative impact on Bangladesh. They say they think this will also hamper the process of the global business.

Professor Mustafizur Rahman, the executive director of the Centre for Policy Dialogue (CPD), said: “One of the negative outcomes will be its impact on the World Trade Organization’s bargaining. And that can very well affect Bangladesh as a WTO member.

He added: “This type of hike in duties is usually applicable for all countries under the ‘most favoured nation’ category. As a result, an increase of duties on any product Bangladesh exports may have a negative effect.”

“For example, if the US hiked import duties on readymade products from China, then it will also be applicable for Bangladesh,” he explained.

When asked who would gain if the duties are hiked, the CPD fellow said: “The producers inside the US would benefit the most. But it will harm the US consumers and foreign exporters.”

Speaking about the recent 25% duty hike in the US on steel, Mustafizur said: “The exporters were preparing to file a case with the WTO.

“Problems have arisen over filing the case. The US is obstructing the formation of a three-member panel for conducting the case.”

Meanwhile, the CNN reported that the US had imposed tariffs on at least $60 billion in Chinese imports on Thursday.

Former Bangladesh ambassador to China Munshi Faiz Ahmad said that if the US hiked duties, then the countries affected by it would take steps against it.

“There are fears that this could turn into a trade war. The US will face losses as its local consumers will have to spend more for buying products,” he noted.

“It is, however, unclear at the moment how the development will affect Bangladesh,” he said, adding that Bangladesh should observe the matter closely and ensure that the country can benefit the most or face the least losses amid the changing situation.

This article was first published on banglatribune.com