Advisable skilled physique to handle post-LDC challenges
CPD convention suggests FDI within the textile sector
FE Report |
March 5, 2021, 10:36 a.m.
Commerce consultants and economists steered on Thursday that the federal government type a central committee, made up of specialists from the non-public and public sectors, to plot methods to beat the challenges of the post-LDCs (least developed international locations), from from 2026.
A few of them spoke in favor of permitting international direct funding (FDI) within the textile sector, particularly in its backward hyperlink industries, to turn into extra aggressive within the world market.
The recommendations come from a web based dialogue – “Leaving the LDC Group: Commencement Methods with Momentum” – hosted by the Middle for Coverage Dialogue (CPD) on Thursday.
Prof. Rehman Sobhan, Chairman of the CPD, chaired this system, throughout which a distinguished member of the assume tank, Prof. Mustafizur Rahman, gave a keynote handle.
Bangladesh Garment Producers and Exporters Affiliation (BGMEA) President Dr Rubana Huq expressed dismay at Bangladesh’s preparedness to face future challenges and questioned whether or not the nation was able to face it or not.
“Who (which public physique) is engaged on it? Is there a central physique? Do we have now concrete efforts to fulfill the challenges forward?”
She referred to as for the fast formation of a central committee to cope with the challenges of commerce and financial relations after the exit of the LDCs.
The president of BGMEA urged the federal government to permit FDI within the textile sector, particularly in its upstream hyperlink industries, to enhance the nation’s competitiveness in worldwide commerce.
She insisted on rising FDI within the backward hyperlink, together with for the manufacturing of artificial fibers within the nation, as Bangladesh’s textile sector is closely depending on cotton fiber, imported from overseas.
Professor Mustafizur Rahman stated the federal government ought to instantly type a central negotiating committee, made up of representatives from non-public sector assume tanks, researchers and commerce consultants, to cope with any bilateral or multilateral discussions on commerce and commerce. financial advantages.
“There’s a lack of coordination between public companies and ministries. If the efforts of the non-public and public sectors aren’t secured, future commerce agreements resembling free commerce agreements (FTAs) and preferential commerce agreements (PTAs) shall be concluded. dismay. “
Prof Mustafiz stated closely protected commerce in Bangladesh can be a significant impediment to (signing) eventual FTAs and PTAs, as counterparts wouldn’t present curiosity within the nation’s larger tariff charges.
The federal government should enable the event of unbiased commerce insurance policies, guidelines and laws to enhance its commerce competitiveness, he added.
“We have to benefit from the advantages and supply services for our enterprise companions.”
The CPD fellow famous that Bangladesh’s heavy reliance on RMG is someway acceptable, as the dimensions of the worldwide textile market is way bigger than different merchandise.
“However after the commencement of LDCs, (dependence on) a single product shall be a problem for us. We have to diversify the export basket to assist it within the worldwide commerce enviornment.”
Specializing in FTAs and PTAs, Prof Mustafiz stated: “After commencement in 2026, Bangladesh must pay a 15 % tax on its exports to the US market. cope with sudden modifications in its aggressive enterprise on this market? “
“Moreover, if Vietnam good points Quota Free Market Entry (DFQF) to america by way of the just lately signed Trans-Pacific Partnership Settlement (TPP), how will Bangladesh face its competitor in Asia?” from the east?”
The CPD scholar steered that the federal government take a worldwide stance with different LDC graduate international locations on the subsequent World Commerce Group (WTO) ministerial convention in Geneva in November to safe commerce benefits once more a couple of instances after. 2026.
He additionally spoke in favor of negotiations with the WTO to realize a bonus over TRIPS, which shall be helpful for the native pharmaceutical trade.
A Matin Chowdhury, managing director of Malek Spinning Mills Ltd and former president of the Bangladesh Textile Mills Affiliation (BTMA), stated Bangladesh ought to enable FDI within the textile sector to make the nation aggressive globally.
“Bangladesh is poor by way of upstream merchandise from the textile sector. For that reason, we must always appeal to FDI by way of joint ventures.”
Mr. Chowdhury additionally targeted on modernizing the nation’s training system to develop the workforce with larger productiveness.
As this system’s principal visitor, State Minister for Overseas Affairs Shahriar Alam stated Bangladesh has confirmed its capability in rising its RMG exports to the US market, even after reaping its commerce advantages there.
He added that as a future creating nation, the picture of Bangladesh will enhance, the credit standing shall be improved and the probabilities of contracting exterior loans, together with business ones, will enhance.
Mr Alam stated Bangladesh was working to signal FTAs and PTAs with bilateral and sub-regional blocs to fulfill future challenges.
Professor Rehman Sobhan stated he didn’t have a transparent image of the challenges forward after the exit from LDCs.
“Three years have already handed because the final assessment of the reclassification of LDCs in 2018 by the UN CDP. However has Bangladesh made any preparations?”
“We have now to compete with India, China and Vietnam after commencement. What preparations have we made precisely?” he added.