How Does the Revision of EU’s GSP Scheme Influence the Exports of Bangladesh?

Redwan Ahmed


This paper is an attempt to analyze the potential benefits that Bangladesh can enjoy being a Least Developed Country (LDC) from its Ready Made Garments (RMG) export following the recent changes in the EU GSP scheme which is due to come into effect from January 01, 2014. The revised GSP Scheme is designed to restrict the entry of the export items from 90 countries’ export to the EU market. It is expected that it will unfold into unprecedented opportunity to the remaining beneficiary countries. Using the revealed comparative advantage (RCA) and export similarity index (ESI), unit price of RMG and labor wage, it is found that Bangladesh is in advantageous position against all these indicators among the top apparel exporting nations to the EU market. Trend analysis approach has been used to analyze statistical information which was mostly collected from secondary sources, especially from ITC Trade Map, EPB Bangladesh and so on. Finally considering all the circumstances, a positive impact is expected and apparently it will give stimuli to regain the high export growth rate which has faced sluggishness mainly in the EU market largely due to debt crisis. The prospect may be capitalized, provided that Bangladesh pays due attention to the proper utilization of existing institutional capacities, effective implementation of compliance issues, reinforcement of supply side capacities, attachment to least lead time encompassing both external and internal trade and finally promotion and placement of its finest it has for its global customers

Full Text: PDF