Assessing tariff and exchange rate passthrough in apparel export prices in the European Union: LDC graduation implications for Bangladesh

Working paper Sustainable Growth and Trade

The study of tariff and exchange rate pass-through has significant policy implications for Bangladesh. Its graduation from the group of Least Developed Countries will lead to the withdrawal of LDC-specific trade preferences, which Bangladesh has long relied on to expand its exports, especially in the ready-made garment sector.

This shift in tariff structure poses significant challenges for Bangladesh's export competitiveness in the EU market.