Lobby trading partners for duty benefit following LDC graduation

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Bangladesh should lobby its major trading companions, including China, Japan, India and europe, to safeguard duty privileges for export development once it leaves the group of least developed countries (LDCs), believes a leading entrepreneur.

By 2050, the Asian region will own 50 % of the world's wealth and Bangladesh also needs to focus extra on its marketplaces like China, Japan and India, said Syed Nasim Manzur, managing director of Apex Footwear, yesterday.

"I contain not opened franchise retail shops found in Madrid, London and any region in Europe. But previous month I opened a franchise retail store at Kathmandu and I have a plan to open three even more such retailers in Nepal next time," he said.

Manzur also said he'd do the same steadily found in Sri Lanka and India for his belief of Asian market segments being the continuing future of organization for Bangladesh, thanks to their substantial consumer bottom.

"However, we will also need to secure the EU markets definitely as this trade bloc may be the largest export vacation spot for our country," he said.

Manzur was addressing a good virtual discussion on "Go up of Geo-economics and Bangladesh", organised by the Economic Reporters Forum (ERF), Fredrich Ebert Stiftung (FES) and the study and Plan Integration for Development (RAPID).

Bangladesh's middle-class customers total 3.5 million who are the primary durability of the economy. So Bangladesh is also a major market for various other countries, he said.

Bangladesh should utilize this reasoning in different trade offers to secure positive aspects once it makes the status graduation from a 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 Income, Bangladesh Bank and the commerce, foreign and other relevant ministries.

Former foreign secretary Humayun Kabir echoed him. He advised undertaking steps to secure American marketplaces as it was the one largest export vacation spot of Bangladesh.

This includes lobbying the Biden administration to regenerate the suspended Generalised System of Preferences (GSP) status for Bangladesh, as US Congress might soon take up a fresh GSP scheme following the expiry of the existing one today.

Bangladesh should be smarter to avail the trade prospects after the graduation due to the global trading program is more complex now, especially since 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. On the other hand, both China and Japan will be signatories to the RCEP. The same could possibly be explained 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 join the RCEP because it includes a strong consumer basic, nonetheless it was unfortunately not invited to the negotiations, she said.

"We must improve our skills and we have to take the features of global trade," stated Kabir.

The tax administration has to be reformed to become more integrated with global trade and investment as a higher import duty to guard earnings generation might isolate Bangladesh and become an impediment to joining any big trade offer, she said.

If Bangladesh wants to meet up with the global aspiration in trade, it requires to improve its expertise, education and governance program, added Kabir.

Presenting a keynote paper and replying to journalists' queries, RAPID Chairman MA Razzaque advocated pertaining to the lobbying, especially in order that the EU will not withdraw trade privileges meant for Bangladesh all at once following the graduation.

For example, the EU will grant Bangladesh a three-time grace period up to 2027 before taking the graduation into consideration to impose a nearly 10 per cent duty on the country's exports, he said.

Bangladesh should suggest a good gradual imposition of the duty, by an gross annual 2 %, he said.

By this time around, Bangladesh will also be qualified to receive signing free trade agreements (FTA) with the EU, taking into consideration the time and troubles faced in inking such deals. Similar steps should be taken for the UK, as Britain is appearing out of the EU, stated Razzaque.

However, Bangladesh should be incredibly judicious in signing FTAs with all country. The country do not need to make a mad hurry for this, he said.

For example, 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 contrary has happened in case there is Vietnam and Myanmar, he stated.

China invested a lot more than $28 billion in Vietnam, much less than what it had promised, while $6 billion found 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 before long. Bangladesh will indication a PTA with Nepal soon as an identical one was inked with Bhutan on December 6, he said.

The government has targeted to export $5 billion worth of ICT products and services in the next five years, he said.

It has been attempting to export another $10 billion worth of halal food, which will offset the twelve-monthly export earnings of $7 billion after graduation, he added.

Commerce Minister Tipu Munshi said the federal government has been delaying signing FTAs to guard generation of earnings from import duties, that was a major way to obtain government income.

The government can be attempting to improve skills and education in specific areas like household leather, ICT and plastic goods by undertaking projects, he said.

The minister expressed hope for businesses to produce a rebound for the Covid-19 vaccine now being available for sale.

ERF President Sharmeen Rinvy, Standard Secretary SM Rashidul Islam, RAPID Executive Director M Abu Eusuf and FES Resident Representative Tina Blohm as well spoke.

Source: https://www.thedailystar.net

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