Lobby trading partners for duty benefit just after LDC graduation
Bangladesh should lobby its main trading partners, including China, Japan, India and the European Union, to guard duty privileges for export development once it leaves the band of least developed countries (LDCs), believes a respected entrepreneur.
By 2050, the Asian region will possess 50 % of the world's wealth and Bangladesh should also focus even more on its markets like China, Japan and India, said Syed Nasim Manzur, managing director of Apex Shoes, yesterday.
"I own not opened franchise retail retailers found in Madrid, London and any country in Europe. But previous month I opened a franchise shop at Kathmandu and I have a plan to open three more such retailers in Nepal next time," he said.
Manzur also said he'd do the same little by little in Sri Lanka and India for his belief of Asian market segments being the continuing future of organization for Bangladesh, because of their substantial consumer bottom.
"However, we will also need to secure the EU market segments definitely as this trade bloc is the largest export vacation spot for our region," he said.
Manzur was addressing a good virtual discussion on "Climb of Geo-economics and Bangladesh", organised by the Economic Reporters Discussion board (ERF), Fredrich Ebert Stiftung (FES) and the study and Insurance plan Integration for Development (RAPID).
Bangladesh's middle-class consumers total 3.5 million who are the primary durability of the economy. So Bangladesh is also a significant market for different countries, he said.
Bangladesh should utilize this reasoning in several trade discounts to secure positive aspects once it makes the status graduation from a good least developed to a good developing country in 2024 he suggested.
For this function, Manzur suggested forming a trade negotiation office comprising officials from the National Board of Earnings, Bangladesh Bank and the commerce, foreign and other relevant ministries.
Former overseas secretary Humayun Kabir echoed him. He advised undertaking steps to secure American markets as it was the solo largest export vacation spot of Bangladesh.
This consists of lobbying the Biden administration to revive the suspended Generalised System of Preferences (GSP) status for Bangladesh, as US Congress might soon take up a fresh GSP scheme following expiry of the existing one today.
Bangladesh should be smarter to avail the trade prospects after the graduation seeing that the global trading system is more complex now, especially because the Regional Comprehensive Economic Partnership (RCEP) was first signed last month.
For example, the strategic relationship between China and Japan had not been so warm. However, both China and Japan will be signatories to the RCEP. The same could possibly be stated for China and Australia, he said.
Nihad Kabir, president of the Metropolitan Chamber of Commerce and Sector (MCCI), backed Manzur.
She also suggested for greater coordination among ministries, trade bodies and federal government departments for more understanding on trade negotiation.
For instance, Bangladesh should have been called to become listed on the RCEP because it has a strong consumer foundation, but it was unfortunately not invited to the negotiations, she said.
"We need to improve our abilities and we must take the features of global trade," stated Kabir.
The tax administration must be reformed to be more integrated with global trade and investment as a high import duty to safeguard earnings generation might isolate Bangladesh and turn into an impediment to joining any big trade deal, she said.
If Bangladesh really wants to meet up with the global aspiration in trade, it needs to improve its expertise, education and governance system, added Kabir.
Presenting a keynote paper and replying to journalists' queries, Fast Chairman MA Razzaque advocated designed for the lobbying, especially to ensure that the EU will not withdraw trade privileges to get Bangladesh all at once following the graduation.
For example, the EU will grant Bangladesh a three-calendar year grace period up to 2027 before taking the graduation into consideration to impose a nearly 10 % duty on the country's exports, he said.
Bangladesh should suggest a good gradual imposition of the work, by an total annual 2 per cent, he said.
By this time around, Bangladesh may also be qualified to receive signing free trade agreements (FTA) with the EU, considering the time and issues faced in inking such bargains. Similar steps ought to be used for the UK, as Britain is coming out of the EU, explained Razzaque.
However, Bangladesh ought to be extremely judicious in signing FTAs with all country. The country do not need to make a mad hurry for this, he said.
For instance, China has pledged a lot more than $27 billion in foreign direct investment (FDI) for Bangladesh but so far only $2 billion has materialised. However the opposing has occurred in case of Vietnam and Myanmar, he stated.
China invested more than $28 billion in Vietnam, much less than what it had promised, while $6 billion in Myanmar, he said.
Commerce Secretary Md Jafar Uddin said the federal government was targeting to signal either FTAs or perhaps preferential trade agreements (PTAs) with 11 countries in the near future. Bangladesh will sign a PTA with Nepal before long as an identical one was inked with Bhutan on December 6, he said.
The government has geared to export $5 billion worth of ICT product or service in the next five years, he said.
It has been working to export another $10 billion worthy of of halal food, that will offset the twelve-monthly export earnings of $7 billion after graduation, he added.
Commerce Minister Tipu Munshi said the government has been delaying signing FTAs to guard generation of earnings from import duties, which was a major way to obtain government income.
The government can be attempting to improve skills and education in specific areas like leather, ICT and plastic goods by undertaking projects, he said.
The minister expressed expect businesses to create a rebound for the Covid-19 vaccine now being available in the market.
ERF President Sharmeen Rinvy, Standard Secretary SM Rashidul Islam, RAPID Executive Director M Abu Eusuf and FES Resident Representative Tina Blohm likewise spoke.
