Photo : Messenger
After getting LDC graduation, the country will relinquish many choices and opportunities in the export market, particularly in the European and Canadian markets. Bangladesh may face an 8–10 percent reduction in its total export earnings, which could amount to about US$2.5 billion annually, due to the loss of duty-free, quota-free access to the European market.
The subsidy programme in Bangladesh agriculture should also be more transparent and limited, said the speakers at a seminar titled LDC Graduation of Bangladesh: Challenges & Opportunities,” which was held on Sunday at the BPGMEA conference room at Paltan Tower under the initiative of the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA).
The former member of the Bangladesh Trade and Tariff Commission Dr. Mustafa Abid Khan, presented a keynote paper in the seminar.
In his keynote paper, Dr. Khan mentioned that Bangladesh was promoted to a lower middle-income country in 2015, has met graduation criteria from 2018 to 2021, and will graduate in November 2026. Raise the bar to upper middle-income countries by 2031 to achieve Sustainable Development Goals by 2030, and high-income countries by 2041.
After graduation, we will lose access to duty-free markets in developed and some developing countries, the GSP benefits in most developed countries, and the availability of technical cooperation and other forms of support. To overcome this situation, we have to reduce trade costs by simplifying customs clearance procedures for the smooth operation of domestic industry, increasing revenue mobilisation for massive investment in physical infrastructure, education, and the health sector, and increasing investment in human resources in both the public and private sectors.
BPGMEA President Shamim Ahmed said that currently, the number of least developed countries stands at 46. The graduation would lead to the relinquishment of many choices and opportunities in the export market, particularly in the European and Canadian markets.
He further said Bangladesh may face an 8–10 percent reduction in its total export earnings, which could amount to about US$2.5 billion annually, due to the loss of duty-free, quota-free access to the European market.
As the timeline for LDC graduation is now finalised, Bangladesh needs to formulate a strong LDC transition strategy, he added.
Special guest FBCCI Senior Vice President Md. Amin Helaly said that the National Board of Revenue (NBR) should formulate creative policies to promote the private sector. The tax collection system of NBR would be improved. Small and medium industries might disappear due to the current shortsighted tax system.
Special guest SCCI President Md. Jashim Uddin said that the prices of goods have increased. Bank loans are increasing. So, businesses must be prepared to operate in this reality. Non-export companies should also be included in this list, with an emphasis on factory compliance.
He proposed setting up a separate government agency for compliance. Emphasises working based on potential 10/12 sectors like plastics. Referring to the comprehensive reforms of the NBR, he said that the desired results will not be achieved with the current NBR.
Messenger/Disha
