Kazi Zahidul Hasan
The government has formulated a draft strategy to withstand challenges in export sector after Bangladesh’s graduation from the LDC group.
‘Export Wing’ under the Ministry of Commerce has prepared the draft to be placed before a meeting of the ‘National Committee on Export,’ for its approval.
The highest-level committee on export promotion, headed by Prime Minister Sheikh Hasina, will sit for the meeting soon, trade officials said on Tuesday.
“We have prepared the strategy in view with the challenges on exports during post-LDC era,” a senior trade official told The New Nation yesterday, wishing not to be named.
The strategy include availing of the GSP plus facility with European Union (EU), signing free-trade agreements (FTAs) with potential regional and bilateral trade partners, providing incentives to prospective export sectors and new products, setting up common digital platform for the trade facilitating (government) agencies, strengthening commercial wings in Bangladesh Missions abroad, transforming Geneva’s Bangladesh economic wing into a full-fledged trade office and appointing honorary councillors abroad for expanding export markets. The trade official said the country’s graduation from the LDC bracket will lead to erosion of trade privileges with European Union (EU) and some other developed countries. Furthermore, Bangladesh’s exports will face an additional 6.7 percent tariff, which could result in an estimated export loss of about $2.7 billion.
“We will try for availing the GSP plus facility in the EU to prevent the potential export loss. In addition to, we will go for signing FTA deals with other developed and LDC countries to boost our exports,” he said.
He, however, said availing of the GSP plus, a standard scheme for the developing country to provide trade benefits, is crucial for Bangladesh because the EU market accounts for over 50 percent of its total export.
Currently, Bangladeshi commodities enjoy duty-free market access to the EU under the GSP facility.
“The government is giving high priority to keep Bangladesh’s export market intact during post-LDC era by sound policymaking. Strategies have been fixed in line with the government plan,” said the trade official, adding, “The ‘National Committee on Export is expected to approve the draft in its next meeting.”
Bangladesh, the largest least developed country (LDC) in terms of population and economic size, is likely to leave the LDC category by 2024, propelled by better health and education, lower vulnerability and an economic boom, according to the United Nations.
The United Nations Conference on Trade and Development has estimated that exports may fall by 5.5 percent to 7.5 percent after graduation.
