Bangladesh needs to diversify export basket: Experts

0 comments

Post-LDC era challenges

Bangladesh needs to diversify export basket: Experts

 FE Report |  November 25, 2019


Photo courtesy: ADB

Bangladesh needs to diversify its export basket and comply with the rules of the World Trade Organisation (WTO) to overcome challenges that would emerge after the country’s graduation from the group of Least Developed Countries (LDCs), experts said on Sunday.

They also called for providing policy support towards creating a more business-friendly environment and improving competitiveness and for better negotiation with trading partners in order to achieve sustainable growth in export.

The experts made the observations at a discussion session marking the launching of the ‘Bangladesh Trade Policy and Negotiation Capacity Building Support Project’, organised by the Policy Research Institute of Bangladesh (PRI) at a city hotel.

Funded by the Trade and Advocacy Fund (TAF2+) of UKaid, the project aims to build capacity of the government officials.

The Ministry of Commerce (MoC), the Overseas Development Institute (ODI) of the UK and Policy Research Institute (PRI) will jointly implement the project.

Bangladesh Tariff Commission Member Dr Mostofa Abid Khan, PRI Chairman Dr Zaidi Sattar, ODI Senior Research Fellow Dr Maximiliano Mendez-Parra and PRI research director Dr Abdur Razzaque spoke at the discussion, with Additional Secretary of MoC Sharifa Khan in the chair.

Giving a presentation on ‘Addressing policy challenges and identifying products for export diversification and promoting their competitiveness’, Dr Zaidi Sattar said Bangladesh requires increased volume of export in coming days to create more jobs and maintain its high economic growth.

Noting that the country’s high economic growth at over 8.0 per cent is mostly possible due to its expanding domestic market, he said there is no alternative to enlarging the export market for future economic sustainability and fulfilling the target of becoming a middle-income country by 2030.

Following the country’s graduation from the LDC group, the businesses may have to pay higher duties for their products exported to developed countries such as the USA, Australia, Canada and the countries in European Union (EU), he said.

Dr Zaidi Sattar also stressed the need for product diversification to reduce dependency on the ready-made garment sector, which accounts for over 80 per cent of the country’s total exports, in order to ensure sustainable export growth.

Referring to the exchange rate appreciation in the last five to six years, he said, “The management of real effective exchange rate should be flexible, as further appreciation may make the export non-competitive in the global market.”

Terming direct subsidy to exportable products contradictory to WTO rules, he said a balance in the policies for export and the domestic market should be ensured.

It has been observed that the subsidy to exportable products other than RMG items hasn’t been effective; so there are scopes for rethinking the issue, he added.

The PRI chairman also said Bangladesh would be benefitted from export in the post-LDC era if it complies with multilateral rules of the WTO.

In another presentation on ‘Options for Trade Relationship with the EU after Bangladesh’s LDC Graduation’, Dr Mendez-Parra said Bangladesh would graduate from everything but arms (EBA) facility in 2027, landing in the EU Standard GSP regime when tariffs on 98.5 per cent of the exports to the EU will rise to almost over 9.0 per cent.

To benefit from GSP+, the EU will need to modify the thresholds to allow Bangladesh eligibility while the country must ratify the convention concerning the minimum age for admission to employment, he said.

A free trade agreement (FTA) with the EU will require limited reciprocity and a longer implementation period from Bangladesh. It should also be ready to negotiate and implement additional disciplines, he added.

Additional Secretary Sharifa Khan said it is not politically possible to remove subsidy on exportable products within a short period.

Rather, policymakers should explore other options to make the export growth sustainable, she added.

ahb_mcj2009@yahoo.com

Leave a Reply

SSCP   CAS-002   9L0-066   350-050   642-999   220-801   74-678   642-732   400-051   ICGB   c2010-652   70-413   101-400   220-902   350-080   210-260   70-246   1Z0-144   3002   AWS-SYSOPS   70-347   PEGACPBA71V1   220-901   70-534   LX0-104   070-461   HP0-S42   1Z0-061   000-105   70-486   70-177   N10-006   500-260   640-692   70-980   CISM   VCP550   70-532   200-101   000-080   PR000041   2V0-621   70-411   352-001   70-480   70-461   ICBB   000-089   70-410   350-029   1Z0-060   2V0-620   210-065   70-463   70-483   CRISC   MB6-703   1z0-808   220-802   ITILFND   1Z0-804   LX0-103   MB2-704   210-060   101   200-310   640-911   200-120   EX300   300-209   1Z0-803   350-001   400-201   9L0-012   70-488   JN0-102   640-916   70-270   100-101   MB5-705   JK0-022   350-060   300-320   1z0-434   350-018   400-101   350-030   000-106   ADM-201   300-135   300-208   EX200   PMP   NSE4   1Z0-051   c2010-657   C_TFIN52_66   300-115   70-417   9A0-385   70-243   300-075   70-487   NS0-157   MB2-707   70-533   CAP   OG0-093   M70-101   300-070   102-400   JN0-360   SY0-401   000-017   300-206   CCA-500   70-412   2V0-621D   70-178   810-403   70-462   OG0-091   1V0-601   200-355   000-104   700-501   70-346   CISSP   300-101   1Y0-201   200-125  , 200-125  , 100-105  , 100-105  , CISM   NS0-157   350-018  , NS0-157   ICBB  , N10-006 test  , 350-050   70-534   70-178   220-802   102-400   000-106   70-411  , 400-101   100-101  , NS0-157   1Z0-803   200-125  , 210-060   400-201   350-050   C_TFIN52_66  , JN0-102  , 200-355   JN0-360   70-411   350-018  , 70-412   350-030   640-916   000-105   100-105  , 70-270  , 70-462   300-070  , 300-070   642-999   101-400   PR000041   200-101  , 350-030   300-070  , 70-270  , 400-051   200-120   70-178   9L0-012   70-487   LX0-103   100-105  ,