DCCI urges govt to ensure smooth LDC graduation
Bangladesh should sign trade deals with potential export destinations to ensure preferential access to the markets after graduating from the group of least-developed countries in 2026, according to the Dhaka Chamber of Commerce and Industry (DCCI).
To ensure a smooth transition and address post-graduation challenges, the government needs to sign free trade agreements, preferential trade agreements, or regional trade agreements, the chamber said in a statement.
Besides, preparation should be taken to implement the terms and conditions of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreements, establish high-value product design and innovation centres with disruptive technology, secure international quality assurance certification, and develop new markets.
To develop new markets, particularly in Southeast Asia and Africa, policy and institutional reforms are needed to boost private and foreign investment, while the revenue structure should be automated for a higher tax-to-GDP ratio.
Modernisation and efficient supply chain and logistics infrastructure are also required, the DCCI said.
"These are expected to leverage our economic graduation and gain its dividends in the country's best interest."
The United Nations Committee for Development Policy (UN CDP) on Friday recommended Bangladesh's graduation after the second triennial review of the LDC category.
Bangladesh secured its graduation by meeting all three of the required criteria -- income per capita, human assets index, and economic vulnerability index -- for the second time.
"This is an honour for Bangladesh as we received this prestigious recognition in a glorious year of golden jubilee of independence of Bangladesh and the birth centenary of Bangabandhu Sheikh Mujibur Rahman," the DCCI said.
Bangladesh was able to achieve this recognition thanks to the dynamic leadership of Prime Minister Sheikh Hasina, who facilitated tremendous progress in all socio-economic aspects of the country for the past decade.
Even amid the ongoing coronavirus pandemic, Bangladesh managed to sustain its economic growth to a large extent due to the government's timely initiatives, it added.
It is inevitable that every country that graduated from the LDC status faced some challenges, and Bangladesh will be no exception, the business chamber said.
As an LDC, Bangladesh enjoys duty-free access to the EU, the US and other major markets. After graduation, the country will face the challenges of maintaining industrial compliance and strong standards of the TRIPS agreements.
As a middle-income country, Bangladesh will also have to compete with other similar nations in the export market amid a loss of subsidies in various home grown infant industries.
Despite these challenges, graduation will generate ample opportunities, the chamber said.
For example, Bangladesh's credit rating will be elevated, the private sector will become more competitive, foreign investors' confidence would grow, and more foreign investment would flow in.
"Above all, streams of international borrowing will be made available."