Smooth LDC graduation: DCCI for formation of a transition strategy

Staff Reporter :
Businesses have emphasized on formulating a “transition strategy” in line with overcoming export losses after LDC graduation.
They made the call in a meeting with the Commerce Minister Tipu Munshi at the latter’s office at the secretariat in the capital on Monday.
In the meeting, Barrister Md Sameer Sattar, newly elected President of the Dhaka Chamber of Commerce & Industry (DCCI), said that Bangladesh will lose the preferential market access and will face 8 per cent to 16 per cent export tariff after LDC graduation as a developing country in different export markets.
“To overcome export loss, he urged for formulating a transition strategy with the participation of private sector to address the issues of post-LDC era,” he said.
Underscoring the signing FTAs with more potential countries and important economic blocs to offset the loss of preferential market access, he said, “Currently, our export market is largely confined to the market of EU and USA. But new market development in the Southeast Asia and Africa region needs to be prioritized along with product diversification.”
“Moreover, we can negotiate with other countries to increase duty free quota free access to Bangladesh after LDC graduation,” the DCCI president said.
He also underscored the importance of reducing the existing import tariff rate which is relatively higher than other countries in the region and to compete in the international market.
“In order to keep prices of essential commodities affordable and keep inflation under control during the Ramzan period, NBR may consider giving certain tax benefits to the importers during the holy month,” he added.
Increasing business efficiency and ease, the DCCI president suggested whether a separate commercial court can be established in order for quick disposal of commercial disputes along with necessary reforms to the Arbitration Act 2001.
Regarding LDC preparation, Commerce Minister Tipu Munshi said that after the graduation we will focus on signing PTA and FTA with potential partners.
“But to avail international support measures even after LDC graduation, we need to enhance our negotiation skills,” he added, citing the government is not doing any business rather we are relentlessly working on sustaining a business friendly environment, required policy reforms and infrastructure development in the country. DCCI Senior Vice-President SM Golam Faruk Alamgir (Arman) and Vice-President Md Junaed Ibna Ali, among others, were present..