PM stresses FTA, PTA to address post-LDC challenges

Prime Minister Sheikh Hasina has directed the signing of Free Trade Agreement and Preferential Trade Agreement with various nations to address the ensuing challenges after the country’s graduation from the Least Developed Country status.

Following the transition, Bangladesh will no longer have duty-free access to exporting goods which will have a negative impact on exports.

Commerce Minister Tipu Munshi spoke of the premier’s directive on Sunday while addressing a workshop titled “Challenges to Transition from LDC” organised by the ministry to know the views of various stakeholders.

Representatives of various government departments and the private sector took part in the event held at the Agargaon Tourism Building in the capital.

The commerce minister said the government is happy with the transition from LDC, and is also serious about that.

“We cannot say in advance what will happen after 2026. The Prime Minister has asked us to make the PTA up-to-date, and wants to know about the steps of the commerce ministry in this regard,” said the minister.

Bangladesh is in the process of development from LDC which will be finalised in 2026. From then on for the next three years, the duty-free export facility will be available in 27 countries of the European Union (EU).

However, in other countries from the year of transition, there will be no duty-free export facility.

According to various studies, Bangladesh’s export income from the EU market can go down by $ 5.28 billion a year. There is a discussion about GSP Plus. However, it is doubtful whether it will include ready-made garments.

The commerce minister said the challenge has already come, and more will follow suit, however, the public-private sector, researchers, educators – all must work together to find a way out.

Apart from trade, the minister also cited some examples of weaknesses in education, health and human resources.

Ahmad Kaikaus, principal secretary to the Prime Minister, attended the workshop as the chief guest.

He said there is serious lack of research on how to address the challenges and solutions after the LDC graduation. Here, serious attention should be paid.

Giving more importance to the domestic market, he said, “We should not just go about finding market overseas leaving domestic market aside.”

In his address, FBCCI president Md Jashim Uddin argued that the main challenge after the transition from LDC is value addition. The use of local industries in export products should be increased. For this, massive investment is needed now.

Jashim requested the government to provide a roadmap for the development of infrastructure, gas, electricity and deep seaports.

“There should also be effective initiatives to strengthen the National Board of Revenue, reduce business expenditure and create skilled manpower. These will contribute to export capacity to meet the next challenges of LDC,” according to the leader.

Senior Secretary to the Ministry of Commerce Tapan Kanti Ghosh said they have listed several countries with which FTAs can go.

He highlighted the observations and recommendations received from the workshop.