Govt to continue incentives for exporters in post-LDC era

The government will provide incentives to exporters after Bangladesh graduates from least developed country (LDC) status in 2026 so that local exporters do not lose their competitiveness in the international markets.

The incentives will be given in different forms since it is not possible to pay direct cash subsidies on export receipts after graduating to a developing country, State Minister for Commerce Ahsanul Islam Titu said yesterday.

The state minister also said the subsidies would be given in line with the World Trade Organization's framework.

He added that export and import policies are being prepared to address challenges related to LDC graduation.

However, he declined to disclose the methods through which the subsidies would be provided.

Officials in the commerce ministry said subsidies may be provided on electricity bills, or in the form of technology upgradation funds and skills development funds.

The state minister also said China and India have been providing similar subsidies to exporters although they are developed and developing nations respectively.

Currently, the government provides subsidies to 43 sectors, annually paying nearly $1.0 billion as cash subsidies.

In order to combat the challenges after LDC graduation, the government has been negotiating trade agreements with major trading partners to retain duty benefits after LDC graduation.

The state minister added that the commerce ministry will identify the challenges that various sectors may face after LDC graduation and the ministries concerned will address those challenges so that local exporters and domestic industries do not lose their competitiveness. For instance, if the poultry sector is facing challenges, the fisheries and livestock ministry will take measures.

Titu said a high-powered committee has been working under the cabinet division to identify challenges and recommend remedies.