Quick steps should be taken

There is a great impact on world trade due to trade war between United States and China. An uncertainty is being created in global trade following the trade war in the two nations.

The war has come as the biggest shock in world economy. If the two countries of biggest economy don’t compromise then there would be a widespread impact. Specialized opined that if the trade war continues then the existing discipline in world trade would collapse and the ongoing free flow of goods would face barrier. Ultimately, Bangladesh would face the impact also.

The US-China trade war was started when the Donald Trump became President of the United States. During a campaign before election, Trump said that China is cheating with US. Chinese people have grabbed US labour market. That’s why he (Trump) imposed restriction on China trades. After the election, he started working on it, according to his announcement.

He imposed new tariffs first on imported solar panels and washing machines in last January. US levied a 25 per cent tariff on imported goods and a 10 per cent tariff on imported aluminum in last March.

In response, China raises trade taxes on U.S. alcohol, pork, fruits and other products increasing tax from 15 to 25 percent. Basically, the trade war between the two countries started from then.

China is the third largest country in the world which imports good from USA. However, the rate is only eight percent of the total exported goods of the United States. USA imported goods worth 524 billion USD from China in 2017. That’s why there is a disagreement among experts about what impact would be created in the China following the trade war. China imports products worth only 187 USD billion. That means the trade deficit for the United States is about 337 billion USD.

But, Bangladesh would be benefited following the ongoing trade war if effective steps can be taken observing the situation. Chine has a trade relation with US worth 524 billion USD in import section. China would search for new sources to get supply to avoid trade risk in this regard. Media recently reported that Chinese companies are planning to export products in US, producing goods in third country.  South China Morning Post in a report said that China has planned to build industry in Asian countries to continue their export in USA. We think that Bangladesh can grab the scope.

Dhaka Chamber of Commerce and Industry and Bangladesh Foreign Trade Institute jointly recently have organized a seminar titled “Trade war and its implications for Bangladesh”. Speakers in the seminar said The United States and China are two super powers in the world. Following the ongoing tension, some of the US investors in China are interested to invest in other countries.”

Bangladesh would be one of the destination in this regard. But, Bangladesh have to take initiatives to create the interest among them to invest here.

Senior commerce secretary Shubhashish Bose and other speakers said that it should be highlighted that Bangladesh is a suitable place for investment. Side by side, the infrastructures should be developed. Besides, it’s needed to build skilled human resources also. The trade war may not continue for long time. The effective steps should be taken immediately in this regard. Otherwise, the scope would go to other competitor countries.

The incumbent government has started steps to set up many economic zones in the country. The government can start campaign to attract Chinese entrepreneurs to invest in these economic zones. Bangladeshi private entrepreneurs has a good relation with Chinese entrepreneurs. Chinese government launched ‘port visa system’ or ‘visa on arrival’ to facilitate citizens of different countries including Bangladesh. So, Bangladeshi entrepreneur should come forward to take the scope.
Source: http://businessnews24bd.com

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