Kazi Zahidul Hasan :
Bangladesh has taken initiatives to sign free trade agreements (FTAs) with a number of countries in order to overcome challenges in its export arena after getting out of LDC block by 2024.
As a Least Developed Country (LDC), Bangladesh gets duty-free market access to European Union, Canada, Australia, Japan and some other countries. But the country will not be able to enjoy the preferential trade benefit after its graduation from the LDC status.
“Bangladesh may lose duty-free facilities once it becomes a developing country. The development will erode competitiveness of local commodities sending the export sector at risk,” a senior Commerce Ministry official (FTA Cell) told The New Nation yesterday wishing to be anonymous.
“To overcome the challenge, FTAs will be the best option.”
In this context, he said, Bangladesh has taken the initiatives to sign FTAs with its key trade partners and several Asian countries, including China, Bhutan, Thailand, Malaysia Sri Lanka and Nepal.
He said even the Government of Bangladesh is working hard to get GSP plus status from the European Union.
As a least-developed country, Bangladesh has
been enjoying zero-duty benefit to the EU under its everything, but Arms scheme since 1971. But once it becomes a developing country, Bangladesh will no longer be eligible for the privilege.
When asked, the Commerce Ministry official said, “Bangladesh may sign the first ever FTA with Sri Lanka. It has been negotiating the FTA with the country since 2013. The deal will be signed as soon as possible.”
“We’re also actively considering signing a FTA with the USA, the single largest export market for Bangladesh. The issue will put in place at the next TICFA talks between Bangladesh and the USA,” he noted.
Bangladesh shipped goods worth US$ 5.84 billion to the US market in the last fiscal (2016-17), which accounted for nearly 17 per cent of its total exports.
Trade analyst earlier feared that Bangladesh was likely to lose about $2.7 billion in export earnings every year once it graduates from the LDC bracket.
They said Bangladesh’s exports now enjoyed preferential access of varying degrees to markets of more than 40 countries. But exports will face an additional 6.7 per cent tariff once it leaves the LDC status leading to fall by 5.5-7.5 per cent as a result of withdrawal of preferential access.
“Without FTAs, Bangladesh will lose competitive advantages to other countries where its exports continue to grow over the years,” said the Commerce Ministry official, “If Bangladesh can negotiate fruitful FTA deals with its key regional and continental trade partners, it will ultimately have no problem in leaving the LDC bloc.”
So, the government is focusing on singing bilateral FTA deals with countries and nations to keep intact Bangladesh’s export markets during post-LDC era.
Bangladesh has taken initiatives to sign free trade agreements (FTAs) with a number of countries in order to overcome challenges in its export arena after getting out of LDC block by 2024.
As a Least Developed Country (LDC), Bangladesh gets duty-free market access to European Union, Canada, Australia, Japan and some other countries. But the country will not be able to enjoy the preferential trade benefit after its graduation from the LDC status.
“Bangladesh may lose duty-free facilities once it becomes a developing country. The development will erode competitiveness of local commodities sending the export sector at risk,” a senior Commerce Ministry official (FTA Cell) told The New Nation yesterday wishing to be anonymous.
“To overcome the challenge, FTAs will be the best option.”
In this context, he said, Bangladesh has taken the initiatives to sign FTAs with its key trade partners and several Asian countries, including China, Bhutan, Thailand, Malaysia Sri Lanka and Nepal.
He said even the Government of Bangladesh is working hard to get GSP plus status from the European Union.
As a least-developed country, Bangladesh has
been enjoying zero-duty benefit to the EU under its everything, but Arms scheme since 1971. But once it becomes a developing country, Bangladesh will no longer be eligible for the privilege.
When asked, the Commerce Ministry official said, “Bangladesh may sign the first ever FTA with Sri Lanka. It has been negotiating the FTA with the country since 2013. The deal will be signed as soon as possible.”
“We’re also actively considering signing a FTA with the USA, the single largest export market for Bangladesh. The issue will put in place at the next TICFA talks between Bangladesh and the USA,” he noted.
Bangladesh shipped goods worth US$ 5.84 billion to the US market in the last fiscal (2016-17), which accounted for nearly 17 per cent of its total exports.
Trade analyst earlier feared that Bangladesh was likely to lose about $2.7 billion in export earnings every year once it graduates from the LDC bracket.
They said Bangladesh’s exports now enjoyed preferential access of varying degrees to markets of more than 40 countries. But exports will face an additional 6.7 per cent tariff once it leaves the LDC status leading to fall by 5.5-7.5 per cent as a result of withdrawal of preferential access.
“Without FTAs, Bangladesh will lose competitive advantages to other countries where its exports continue to grow over the years,” said the Commerce Ministry official, “If Bangladesh can negotiate fruitful FTA deals with its key regional and continental trade partners, it will ultimately have no problem in leaving the LDC bloc.”
So, the government is focusing on singing bilateral FTA deals with countries and nations to keep intact Bangladesh’s export markets during post-LDC era.
