The national committee on export exhorts stakeholders to address issues like introduction of export credit guarantee scheme, making the Export Development Fund realistic and providing duty-free import of raw materials to meet post-graduation challenges.
It also calls for incentivising export sectors until 2026, and the same for man-made fibre (MMF), extending time frame of customs bond and trade licence to five years, eliminating bottlenecks of HS code and opening commercial farming of vannamei variety shrimp.
The committee, headed by the premier, suggests examining key issues, including bonded-warehouse facility in all sectors, combination of at-source tax and income, establishing central bonded-warehouse facility for SME sector and establishing cold-storage facility at airports.
Different state entities have been instructed to take measures to encourage pre-wastage and post-wastage activities, reducing import duty with a view to signing FTA/PTA, and making the duty-repatriation process smooth and trade-friendly.
Later last month, the 44-member national body sent the orders to finance division, industries, textiles and jute, environment, forest and climate change, civil aviation and tourism, fisheries and livestock, and shipping ministries and the revenue board for steps.
The high-powered panel gave the instructions from the 11th meeting held on March 20 to devise necessary strategies to deal with challenges to be emerging after Bangladesh’s graduation from LDC status.
A desk official said according to the latest meeting, commerce ministry sent the letters to the ministries concerned and the NBR for charting out the next course of action in the country’s burning issues.
To reduce lead time in exporting sector, a senior official said, the government will take steps to increase capacities of all types of ports, enhancing cargo space including rationalising air fare, amending laws and rules of textile and clothing sectors.
He said the committee also instructed to take a step on intellectual property (IP), updating domestic law and rules in compliance with WTO rules.
The ministries concerned would take combined steps for the leather and shoe sectors, he added.
He, however, said the government has already taken a set of graduation-preparatory measures to navigate the headwinds to be stemming from the winding down of trade privileges.
A high official said the government, from time to time, was preparing the strategy to address the challenges when Bangladesh would graduate to next level and the process would help boost exports significantly.
“We need to take an initiative to reap the benefits after graduation,” said the official with knowledge of transition preparedness.
Currently, Bangladesh’s products have duty-free market access to 38 countries. Of the destinations, 27 member states of the European Union (EU) are giving duty-free market facilities to Bangladeshi products.
Besides, Japan, Chile, Norway, New Zealand, Australia, Canada, India and China are also providing such trade treatments.
The DFQF facilities and preferential rules of origin for the LDCs as per the WTO Hong Kong ministerial and Nairobi ministerial declarations must be provided by the developed and developing countries.
He thinks many developed countries would not provide duty-free facility to Bangladesh after its graduation from LDC in 2026.
The commerce ministry is taking steps to put in place adequate measures for expanding the volume of exports after graduation, says another commerce official, who is also dealing with the transformation issues.
“The ministry has already taken measures to increase the country’s export earnings. It has taken initiatives to sign agreements, including FTA/PTA, with a number of countries.”
He mentions that the government is also working to explore new business opportunities in the wake of the Covid-19 pandemic across the globe.
It has already assigned commercial counsellors and first secretaries (commercial) of Bangladesh missions abroad to identify new export opportunities during and after the pandemic.
The government formed a high-profile committee under the chairmanship of the principal secretary of the Prime Minister’s Office to guard against any possible external shock to export earnings after graduation.
A total of seven subcommittees have been formed under the committee to draft strategies with a time-bound action plan to meet the challenges of LDC graduation.
The government has set an export target of $67 billion in revenues from export of goods and services for the current fiscal year, 2022-23.
The panel on export comprises 11 ministers, principal secretary at the PMO, 16 senior officials and executives of different ministries, divisions, agencies and presidents of 16 trade bodies/associations.
A senior trade economist said, “We’ll need to aggressively pursue negotiating bilateral and regional comprehensive economic-partnership agreements to attract investment and create the needed supply-side capacities and to take advantage of preferential market access.”
He also suggests diversifying RMG items as the global demand for MMF-based apparel items is growing. Around 75-per cent apparel items here are cotton-based.
“We should emphasise potential sectors like jute and service sectors to absorb the possible export shock after graduation,” he said about the choices ahead.
“Besides, prudent steps should also be taken to increase the productivity to face the challenges ahead.”
The trade economist also suggests that Bangladesh should also pay special attention toward ‘ease of doing business’ for helping enhance its export-competitiveness on the global market.
