Develop transition strategy with private sector: DCCI

The government should formulate a "transition strategy" with the private sector to address any detrimental effect, such as a loss in exports, arising from Bangladesh's United Nations status graduation in 2026, said the DCCI yesterday. 

Once it comes to be known as a developing nation from a least developed country (LDC), Bangladesh will lose preferential market access to different export destinations, said Sameer Sattar, president of the Dhaka Chamber of Commerce and Industry (DCCI).

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Instead, it might face export tariffs of 8 per cent to 16 per cent, he said during a discussion with Commerce Minister Tipu Munshi at Bangladesh Secretariat.

Bangladesh needs to sign free trade agreements (FTAs) with more countries and important economic blocs to offset such losses, said Sattar.

"Currently, our export market is largely confined to the market of the European Union and United States of America," he said.

"But new market development in Southeast Asia and Africa regions needs to be prioritised along with product diversification," added the DCCI president.

"Moreover, we can negotiate with other countries to increase duty free access and quotas for Bangladesh after the graduation," he said.

To further bring ease and efficiency in business, the DCCI president suggested establishing a "commercial court" for quick disposal of relevant disputes along with bringing necessary reforms to Arbitration Act 2001

Sattar also underscored the importance of reducing Bangladesh's existing import tariff rates, saying they were relatively higher than those in other countries in the region.

"This is because, after 2026, we will need competitive and open tariff rates to compete in the international market," he said.

He also said the government needs to consider maintaining supplies of essential commodities during Ramadan at an affordable price amidst the current inflationary stress.

In order to keep prices and inflation under control, the National Board of Revenue may consider giving tax benefits to importers, said Sattar.

To further bring ease and efficiency in business, the DCCI president suggested establishing a "commercial court" for quick disposal of relevant disputes along with bringing necessary reforms to Arbitration Act 2001.

Commerce Minister Tipu Munshi urged the business community to invest more in agro-processing industries.

"After the graduation, we will focus on signing preferential trade agreements and FTA with potential partners," he said regarding preparations for the graduation.

"But to avail international support measures even after the graduation, we need to enhance our negotiation skills," he added.