Signal FTAs with Asean, raise export, investment

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Economists and organization leaders have got suggested that Bangladesh indication no cost trade agreements with Asean member says for boosting exports to the bloc, and ease investment rules to pull foreign investments.

In addition, they recommended rigorous attempts to diversify its products and their marketing overseas as the united states will face stiff competition after making its status graduation into a developing country by 2027 when the European market will withdraw its tariff concession.

The observations came at a webinar on "Expanding Bangladesh's Organization Ties with the ASEAN Countries" organised by the Ministry of Foreign Affairs on Sunday. Economists, Bangladesh's ambassadors to the ASEAN countries and organization leaders attended it.

In a presentation, Selim Raihan, a professor in economics, said in 2019, Bangladesh had export earnings as meagre as $846 million from Asean states against an import bill of roughly $9 billion.

He said Bangladesh could gain drastically by integrating into Asean market segments. "It really is high time to consider Southeast Asia."

Prof Raihan said the signing of the Regional In depth Economic Partnership (RCEP) made up of 10 Southeast Parts of asia, together with South Korea, China, Japan, Australia and New Zealand, means that intra-regional trade and investment will be boosted significantly in the region.

As Bangladesh isn't part of the free trading bloc, there are hazards of decrease in exports to Asean countries and of the rich countries of the bloc limiting investments to the regional countries, he said.

"Therefore, Bangladesh must be proactive found in signing FTAs with Asean, improve our infrastructure, ease investment regulations and remove bureaucratic crimson tape," Selim Raihan stated.

BGMEA President Rubana Huq said by 2030, Asean as a bloc would be the 4th largest economy on the globe also to enter that marketplace Bangladesh should negotiate signing an FTA with a Rules of Origin clause favourable to the Asean says.

She said the BGMEA itself has discovered eight sectors for diversification of products and recommends forming an export diversification council as the country till day has been heavily reliant on the apparel sector for export revenue.

Metropolitan Chamber of Commerce and Sector President Nihad Kabir advocated for a pro-dynamic and thorough trade policy, taking lessons from Bangladesh's opponents that are doing better with regards to drawing overseas investments and boosting exports.

She said Bangladesh should appoint trade representatives abroad to promote trade and woo foreign investments.

When there are talks of signing FTAs, the National Board of Income says it reduces earnings, she said, added that signing FTAs would essentially help boost domestic income in the long run.

"We need targeted and coordinated actions, not scattered ones," Nihad Kabir said.

According to official data, readymade garments are still the key export item to the Asean industry, and that can still be increased.

The next position is held by pharmaceutical products, and export of the drugs can be boosted drastically if the drug companies are allowed to setup offices in the vacation spot countries.

Bangladesh Ambassador to Vietnam Samina Naz said the existence of highly skilled labour and government policy support will be the major causes of Vietnam going before Bangladesh when it comes to export as well as wooing foreign investments.

However, Vietnam is actually a good marketplace for Bangladesh's pharmaceutical goods, she said.

Foreign Secretary Masud Bin Momen, who chaired the webinar, said in order for Bangladesh to attain its goal of reaching an export figure of $60 billion by the turn of the year, the performance about the South East Asian front side must be much better.

He asked all the high commissioners and ambassadors to find ways and means to improve export to Asean states and send studies to the ministry.

Extra Secretary (East) to the overseas ministry Mashfee Binte Shams suggested that the missions on the Asean countries forge strategic partnerships with prominent trade bodies and chambers on the host country to organise solitary country or product fairs.

Source: https://www.thedailystar.net

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