Export diversification: DCCI for comprehensive trade policy

The Dhaka Chamber of Commerce and Industry (DCCI) has called on the government to formulate a comprehensive trade policy to promote export diversification and attract more foreign investments.

DCCI President Rizwan Rahman made the request on Monday as he met with Commerce Minister Tipu Munshi at the secretariat.

Rizwan Rahman requested the minister to allow the same fiscal and non-fiscal facilities to all export-oriented sectors keeping in mind the least developed country (LDC) graduation timeframe of Bangladesh.

He also urged the government to step forward to sign a free trade agreement (FTA) with the UK in the post-Brexit era.

“Also, the businesses will need extensions on both moratorium and repayment time for loans, disbursed under the stimulus package, for at least one year as most of them are reeling from pandemic fallout,” Rizwan said.

The nature of the global economy has changed a lot and to be more competitive in the export market, the government will support all the promising sectors, the minister said.

“We need to have more institutional research to survive in the international market with more diversified products.”

Also, the minister requested the DCCI president to put forward necessary recommendations of the business community to the ministry for the government’s consideration.

The International Monetary Fund (IMF) recently called on continuing investment in infrastructure and human capital, lowering barriers to new businesses and reviewing the existing tariff structure faced by the non-RMG sector in Bangladesh to promote export diversification.

“With limited diversification, exports remain concentrated in the RMG sector,” said the IMF.

The international lending agency said new products and growing sectors, such as footwear, leather and pharmaceuticals were showing potential for diversification but the share of the low-skilled apparel sector in total exports remained high at around 80%.