Businesspeople and experts on Monday called for simplifying the ease of doing business and removing the existing bureaucratic bottlenecks to cope with the challenges Bangladesh might face in its post-LDC graduation era.
They also stressed the need for signing bilateral, regional and free-trade agreements to attract more investment and enhance trade with the countries where preferential market access would come to an end with the country's graduation.
These were the observations made at a roundtable, titled 'Opportunities and Challenges for Commerce and Trade', organised by the Centre for Governance Studies (CGS) at a city hotel on Monday.
The event was the last of three such roundtable discussions that took place on the day as part of a national dialogue on Bangladesh's LDC graduation.
UNDP Bangladesh country economist Dr Nazneen Ahmed moderated the session.
"We have been talking about trade facilitation for a long time but unfortunately we could not reform much," said Abdul Haque, a former director of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
The absence of much-needed institutional reforms is one of the challenges that impacts small and medium enterprises (SMEs), especially the new ones, he said, adding that SMEs face immense difficulties in getting required services.
Speaking on the occasion, former FBCCI president Abdul Awal Mintoo said bureaucratic tangles are another challenge for the post-graduation period.
Bureaucracy doesn't go in line with the graduation process of the country, he observed.
Japan External Trade Organization (JETRO) country representative Yuji Ando suggested simplifying administrative procedures to help ease of doing business and ensure a business-friendly climate in the country.
Bangladesh currently enjoys a GSP facility in Japan. In this regard, he said, "Signing FTA could be a great choice to expand trade and business between Bangladesh and Japan."
Once an FTA is signed between Bangladesh and Japan, more investments might come into the country, he observed.
Talking about the readymade garment (RMG) sector, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) director Abdullah Hill Rakib said they were engaged in trade diplomacy and exploration of new markets in the Middle East and Asia, keeping in mind the challenges after the LDC graduation.
Centre for Policy Dialogue (CPD) research director Dr Khondaker Golam Moazzem said Bangladesh should come out from the preferential market access to competitive competence.
He underscored the importance of signing bi-lateral and regional agreements based on not only products but also services and investment.
He also suggested ensuring labour and environmental compliances in all industrial sectors.
Speaking on the occasion, Mahesh Mishra, head of Prosperity and Economic Growth Team, Foreign Commonwealth and Development Office (FCDO) at British High Commission, said Bangladesh should not look into only duty-free market access rather it should think of what the country could offer to the rest of the world.
FBCCI President Jashim Uddin said graduation would be an opportunity for Bangladesh.
Both the private and public sectors need to work together to address the post-graduation challenges, he added.
Earlier in the day, at the first roundtable, titled 'Preparedness for Smooth and Sustainable LDC Graduation', speakers said necessary policy reforms were crucial for Bangladesh's smooth graduation from a least developed country (LDC) to a developing one.
Besides, export competitiveness, skill development, concerted efforts from all stakeholders, participation of the private sector, and inclusive green growth are also essential during this transition period, they said.
CGS Executive Director Zillur Rahman delivered the welcome remarks, while its Research Director Dr Abdullah-Al-Mamun presented the concept note and CGS Chairman Dr Manjur Ahmed Chowdhury spoke at the session.
The World Bank Group's Country Director for Bangladesh and Bhutan Mercy Miyang Tembon attended as a guest of honour at the discussion, moderated by the Senior Partner of PwC Bangladesh Mamun Rashid.
In her speech, Mercy Miyang Tembon said there was a need for recognition of challenges and opportunities for Bangladesh as it was preparing to graduate from LDC.
There are challenges like skill gap, and weak institutions, healthcare and education, which need to be addressed, she said, adding that some reforms had been made in the country but there was a necessity for bringing in major reforms.
"Following low-hanging reforms, right now we need to move to the second generation of reform which will lift the country and shift its gear to where it wants to go," she said.
All the plans related to the LDC graduation should not be limited to papers only, rather they should be implemented properly, she said.
"You need to translate the plan and those ideas into action that touches everybody in the society. It has to be green, resilient and inclusive," she added.
Speaking on the occasion, Executive Director of Research and Policy Integration for Development (RAPID) Dr M Abu Eusuf said poor institutional capacity was one of the key challenges for Bangladesh's graduation.
To overcome the challenges, he put emphasis on graduate employability, infrastructure development, reducing cost of doing business and enhancing competitiveness.
Senior Partner of PwC Bangladesh Mamun Rashid said despite being a LDC country Bangladesh had been fighting with many developing countries in the global economy.
Underscoring the need for reforms in various sectors, he said Bangladesh needed to prepare for the changes as it would gradually lose some preferential trade facilities in future.
In the opening session, CGS Executive Director Zillur Rahman said the onslaught of Covid-19 had posed more challenges to the government's roadmap for LDC graduation.
It seems that the government is yet to have a comprehensive action plan and an effective transition strategy, he said.
"Data from already graduated countries demonstrate that by working very closely with national stakeholders and international development partners to formulate a smooth transition strategy, these nations have been able to secure support in terms of trade, aid and investment for sustainable graduation," he added.
Former education minister Sheikh Shahidul Islam, President of Bangladesh Women Chamber of Commerce and Industry Salima Ahmad, Chairman of the Department of Development Studies at Dhaka University (DU) Professor Rashed Al Mahmud Titumir, and Secretary General of SWACIP Professor Dr M A Aziz, among others, spoke at the event.
