Trade uncertainty clouds export outlook
Bangladesh’s export sector is facing mounting risks from shipping disruptions, uncertainty over US tariffs, rising protectionism and the gradual loss of trade preferences as the country prepares to graduate from least developed country (LDC) status, HSBC officials have warned.
The challenges were highlighted at a business forum titled “Navigating Global Trade: Future-Proofing Bangladesh”, organised by HSBC in Dhaka on Tuesday.
Shanella L Rajanayagam, senior trade economist at HSBC Global Research UK, said global trade was being disrupted on several fronts, with shipping shocks and changes in US tariff policy creating fresh uncertainty for businesses.
The risks are particularly significant for Bangladesh as it prepares to graduate from LDC status and gradually lose some of the trade preferences it currently enjoys.
“Securing preferential market access through trade deals matters more than ever,” Rajanayagam said.
HSBC officials said businesses were also being forced to rethink supply-chain strategies and capital allocation as the cost of building resilience increases.
Aditya Gahlaut, managing director and regional head of Global Trade Solutions for Asia at HSBC, said companies now faced difficult decisions over supply chains, capital deployment, revenue models and investment in artificial intelligence.
He said resilience was no longer simply an operational issue but was increasingly becoming a balance-sheet decision, requiring companies to commit capital, hedge risks and finance changes to their operating models.
The pressure comes at a critical time for Bangladesh’s export industries, which must remain competitive while adapting to changing trade rules and evolving customer requirements in major international markets.
Despite the challenges, Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh, said the country’s young workforce, growing domestic demand and rising trade volumes could create new opportunities in the changing global environment.
Ahmad Rabiul Hasan, country head of Global Trade Solutions at HSBC Bangladesh, said the bank would continue supporting businesses as they adapt to the evolving global trade landscape.
The forum brought together HSBC clients and business leaders to discuss immediate risks facing international trade and the measures Bangladesh-based companies need to take to maintain competitiveness.
The discussions underscored the growing need for exporters to diversify markets, strengthen supply chains and secure preferential market access as Bangladesh navigates a more uncertain global trading environment.
