New era beckons
Bangladesh is confident that it can fight the challenges stemming from the graduation from the grouping of least-developed countries (LDCs) as the federal government has taken measures.
The US Committee for Development Policy (UN CDP) in its second triennial review assessed the economy of Bangladesh and discovered that the country met each of the three standards comfortably to graduate for the group.
Bangladesh was good ahead in the gross national income (GNI) criteria: its per capita income was first almost $1,827 in 2020 against the threshold of $1,230.
In the Human Assets Index (HAI) criteria, the country's score stands at 75.3 points, well on top of the requirement of 66.
In the Economic Vulnerability Index (EVI), a country's score must be less than 32. Bangladesh's score is normally 27.3 points.
Once Bangladesh is recommended to leave the LDC group to become a developing nation, the proposal might be sent to the US Economic and Social Council (ECOSOC) for endorsement in June. The UN General Assembly is planned to approve the proposal in September this year.
Fatima Yasmin, secretary of the Economic Relations Division, submitted the united states job paper to the UNCDP last month. The UNCDP Expert Group finished the assessment on Bangladesh between February 22 and 26.
An announcement on graduation is expected tomorrow.
The info for the 2021 triennial analyze indicates that Bangladesh meets the graduation thresholds in every the criteria again, and it is incredibly likely that the country would be recommended for graduation in the triennial evaluate.
Bangladesh expects the UN CDP would recommend Bangladesh for graduation found in 2026.
In the paper, Bangladesh sought continuation of international support actions (ISMs) after graduation and the extension of the transition period for just two more years.
Three primary challenges and vulnerabilities, including the fallouts of Covid-19, the impacts of climate change and the increased loss of trade-related ISMs were discovered for Bangladesh in the post-LDC period.
To be able to meet all natural disasters such as for example floods and cyclones, the federal government has already formulated strategies.
The government has drawn up Bangladesh Climate Change Strategy and Action Plan 2009, the Climate Change Trust Fund 2009, the National Sustainable Development Strategy 2010-2021, the National Environment Policy 2018, and the Bangladesh Delta Plan 2100.
The paper also talked about the government policies and measures used the Eighth Five-Year Program (8FYP), including allocating more resources for green development, planning taxing commercial units for air and water pollution, reducing subsidies for fuel, and adopting green tax on fossil fuel consumption.
Bangladesh made the best use of ISMs among the LDCs: It is the highest user of the duty-free and quota-free (DFQF) facility among the LDCs. The common tariffs increase by 8.9 % after graduation.
In the area of the Trade-Related Intellectual House Rights (TRIPs) flexibilities, the paper said there was no dependence on a patent protection in medicine development as Bangladesh satisfies around 98 % of local demand and exports to a lot more than 100 countries.
Only 25 % pharmaceutical products will demand patent licences immediately after graduation, it said.
The cost of official production assistance increase due to the rise in per capita GNI, the paper said.
Bangladesh features sought two additional years together with the regular three-year preparatory period as a result of the uncertainty due to the pandemic.
"The proposed extension can help get over the pandemic, permit businesses to deal in post-graduation environment, and prepare the transition strategy engaging all stakeholders, like the private sector, production and trading partners and think-tanks," the paper stated.
Within medium and long-term actions, the implementation of the 8FYP, creation of innovative market access through signing of Preferential Trade Agreement, Free Trade Agreement, Thorough Economic Partnership Agreement, and taking preparations for EU's Generalised System of Preferences (GSP) In addition facility would be completed.
"Post-graduation, the continuation of ISMs is needed to move toward to attain the SDGs by 2030 and graduate with momentum."
Bangladesh in addition has sought works with for managing climate change, increased usage of development financing, and safe and sound and speedy repatriation of 1 1.1 million forcibly-displaced Myanmar nationals.
Relating to the impacts of graduation, Rubana Huq, president of the Bangladesh Garment Suppliers and Exporters Association (BGMEA), said although graduation gives an immense national pride for the united states, it could also bring about numerous challenges.
"The nation should be united on giving an answer to these challenges."
According to Huq, 73 per cent of Bangladesh's exports, really worth $25 billion, love duty-free access as a great LDC, which preferential access would arrive to an end after the transition period.
"In EU, we enjoy single transformation Guidelines of Origin under Everything but Arms (EBA) currently. With the graduation, Bangladesh will have two alternatives - Generalised Program of Preference (GSP) Plus or Regular GSP, and both of them require double transformation rules of origin, which is certainly problematic for us."
"The criteria to adhere to 7.4 % import threshold for being eligible to the EU's GSP Plus can be a non-qualifier for Bangladesh since we've already exceeded 20 per cent," Huq said.
Bangladesh's export competitiveness will also be affected since the current subsidy programmes may not continue found in the post-LDC era found in its current variety, she said.
She said Bangladesh needs empathetic consideration from the European Union in particular to extending the existing scheme duty-free market access scheme by at least another 7-10 years on the ground of higher concentration of RMG in the EU market, and the possible implication on career and poverty.
Discussion with the European Commission should be initiated with regard to 7.4 per cent import threshold conditions for GSP Plus scheme, the BGMEA chief said.
The EU is currently reviewing its GSP scheme for 2023 and it will be finalised soon.
"Such satisfaction and prestige can not be quantified," said Finance Minister AHM Mustafa Kamal at a gathering on graduation with local stakeholders found in Dhaka on February 6.
The finance minister also noted that Bangladesh has proven incredible resilience during all previous global crises.
"Likewise, we would be able to adjust perfectly with the forthcoming dynamics that could usher with graduation from LDC position," the minister said found in a statement following the workshop.
Commerce Minister Tipu Munshi said Bangladesh should begin preparing for the gradual withdrawal of international support steps.
Sheikh Fazle Fahim, president of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), needed effective involvement of the private sector in the formulation of transition strategy.
