Defer graduation from LDC golf club to tap trade benefits
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Bangladesh should defer the LDC graduation method considering the adverse impact of COVID-19 pandemic that has already turned the economy ugly, economists and business leaders said on Saturday.
They said the policymakers should instead engage in the ongoing lobbying for further extension of the prevailing trade benefits that Bangladesh now enjoys as a least-developed country.
The ideas came at a virtual dialogue on "International Trade in COVID Times: Impact and Way Forward for Bangladesh,"
The Dhaka Chamber of Commerce and Industry (DCCI), the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), Insurance policy Exchange, Chittagong STOCK MARKET (CSE), BUILD (Organization Initiative Leading Development) jointly organised the debate.
Speaking at the function, distinguished fellow of the Centre for Insurance policy Dialogue (CPD) Prof Mustafizur Rahman said Vietnam at this time pays 12 % of duty pertaining to exporting garment products in the European Union, where Bangladesh loves zero-tariff as an LDC.
Over the next many years, Bangladesh will eventually lose such benefits following the graduation while Vietnam are certain to get zero-tariff facility taking the benefit of the Vietnam-EU free trade area (FTA) accord, he said.
"A huge paradigm shift is to be happening and it will be problematic for us. So, we have to translate comparative advantages into competitive edges instantly," he said.
He said a worldwide activity has been launched for the deferment of the LDC graduation method as a result of economic setbacks due to the pandemic.
Dr Rahman said the Community Trade Organisation (WTO) on behalf of LDCs raised the demand for extending the prevailing trade rewards for some period for the nations, that will achieve the developing nation status.
"We should you should think about both of these options," he noted.
Former president of the MCCI Syed Nasim Manzur said COVID-related health management is going to be directly impacting the monetary recovery.
"If it is not proper, overseas purchase, international trade and movement of business persons will get affected," he said.
Mr Manzur, managing director of Apex Footwear, said the country's export sectors were in big trouble even prior to the pandemic pummelled the united states due primarily to higher period and costs of conducting trade with remaining world.
"We have long been talking about the lead time, but it has not been discussed much. The expense of conducting business is directly linked with the alleviate of conducting business," he said.
He also laid emphasis on reforming the foreign exchange guidelines and devaluing the local currency.
Chairman of Coverage Exchange Dr M Masrur Reaz said the united states must give more concentrate on the FTA, that will give the much-needed impetus to the market in the challenging years ahead.
He highlighted a good national degree of framework for controlling the quality of products, which is recognised globally.
Moderating the debate, DCCI president Shams Mahmud explained the pandemic has generated opportunities alongside organization hurdles.
He said many global retailers want to change their orders and expenditure from China as the Chinese government has offered zero-duty advantages to 8,256 Bangladeshi products.
"We can gain immensely through the proper use of such chances," he added.
Talking about trade insurance plan, Dr Zaidi Sattar, chairman of the Policy Research Institute of Bangladesh (PRI), said a substantial amount of products are included in the export basket every year, but the majority of those do not sustain over time.
"This is for the reason that export incentive that the garment sector enjoys isn't given to the non-garment industries. In the post-COVID, you need to do it. Usually, export will not rise," he added.
MCCI president Nihad Kabir suggested the periodic follow-up meetings between businesses and the Prime Minister for far better outcomes in the approaching days.
Wahidur Rahman Sharif, president of the Bangladesh Association of Call up Center & Outsourcing (BACCO) said native companies should count on the local It again firms to automate their setups.
"This mutual trust will help develop hometown innovations that can be exported afterwards," he said.
Speaking as the chief guest, parliamentary standing up committee in the Ministry of Commerce Tofail Ahmed explained the business-friendly federal government is well aware of the post-Covid challenges.
Discussing the zero-trade benefits offered by the Chinese federal government to 97 per cent of Bangladeshi products, this individual said the country may earn at least All of us$ 2.5 billion a year through employing this offer.
Source: https://thefinancialexpress.com.bd
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