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There were causes for consternation in recent reports that US buyers could make it cheaper to source apparel closer to home such as Mexico so as to increase profitability. The Fed's rate increase isn't doing anything to ease those fears and the world could see America's boom ending up as a bane. Added to this will be the inevitable rise in fuel prices once the Iranian sanctions buy in albeit with the eight specific waivers. Saudi Arabia is negotiating a pullback in production to keep prices stable end even expensive as it seeks money to back up investment benefits.
The curb market greenback has surreptitiously crept up to Tk 85-86 and it has to be a matter of time before the pressure of the downward spiral of the Indian rupee sets a kickback of sorts. Exporters are already clamouring for devaluation of the Taka to ward off increased costs of inputs and we have the uncomfortable period of election time government almost upon us.
And yet according to McKinsey, nearly half of the world's procurement officers prefer Bangladesh as a source for everything relating to price. If ease of business could be added to the mix, exports would soar further, especially in the non-traditional list. As a reference point Ethiopia at 43rd ranks second most favoured. This is part of the secret that has seen Bangladesh go from $9.0 billion export in 2005 to $28 billion in 2018. And the exciting aspect is that $9.0 billion alone is heading for destinations outside Europe and the US. That's one aspect of statistics that doomsday spinners have studiously avoided.
The Small and Medium Enterprises continue to chug along for all the currency adversity. Local assembling is in fine flow thereby creating job security and after sales service. Refrigerator sales alone jumped from 0.7 million units in 2012 to 2.3 million units in 2018 testifying not just to an increase in purchasing power but also stronger faith in local assembling. Imports are down with 93 per cent of fridges being locally assembled and appealing to the consumer in terms of value for money. And that's just one sector.
Burgeoning sales of motorcycles spurred by the Pathao movement makes it just a matter of time before local assembling becomes economically sensible and the Uber style payment has seen the resurfacing of the yellow cabs be it under Pathao branding.
Export opportunities are beckoning in the wake of Europe's turmoil and Brexit. The UK will have to get some form of special trading in place as a substitute for preferential Europe Trade. The trade-wars toss up a few opportunities and thus the renaming of the Tariff Commission to include trade couldn't have come at a better time. The tools and policy is in place. Now is the time to act.