Favouring free trade agreement (FTA) between Bangladesh and Japan, business communities of both the countries suggest the governments should work on it now to create a win-win situation after Bangladesh's graduation from LDC status.
However, the governments of Bangladesh and Japan consider working more in detail on FTA, including joint survey and negotiations and capacity building to reap its benefits.
The suggestions came at a seminar on 'outcomes of the survey on FTA/EPA between Bangladesh and Japan' organised by Japan-Bangladesh Chamber of Commerce and Industry and Japan External Trade Organisation (JETRO) at a city hotel on Sunday.
Commerce Minister Tipu Munshi attended the seminar as the chief guest while Japanese Ambassador to Bangladesh Naoki Ito, Senior Commerce Secretary Tapan Kanti Ghosh and Chairman of Bangladesh Trade and Tariff Commission Mahfuza Akhter as the special guests.
JETRO Country Representative Yuji Ando presented a keynote paper on the survey conducted over 300 Japanese and Bangladesh companies operating in Bangladesh on FTA and Business Preferential Agreement during the period between August 5 and October 14, 2021.
Additional Secretary of Commerce Ministry Noor Mahbubul Haq, founder president of JBCCI Matiur Rahman, Chairman and CEO Policy Exchange Bangladesh Dr Masrur Reaz, Vice President of Japanese Commerce and Industry Association in Dhaka (JCIAD) Myungho Lee and Vice President of JBCCI Shariful Alam also spoke as the panellists on the findings of the survey that found 85 per cent companies want bilateral FTA.
Referring to the government's stand on the FTA, the Commerce Minister said the Bangladesh side will obviously do its own study to assess many issues as there are various duties imposed on imported Japanese products.
The government considers that FTAs are most viable alternative in the near future, he said, mentioning that the subcommittee formed by the Prime Minister's Office has already submitted its draft strategy paper to the Commerce Ministry, stressing the need for negotiating 'new generation FTAs' to include issues like trade in services, investment, labour and procurement.
Tipu Munshi also said only India and China showed interest in the FTA though the paper indicated possible FTA partners with Canada, Japan, China, India, South Korea, Australia and Russia.
The Japanese Ambassador said his government is yet to respond to the Bangladesh government's request on joint survey.
"Getting the government's approval for the joint survey is linked with four Japanese ministries, including foreign affairs, finance and agriculture, offering working on the negotiation capacity on the FTA."
"FTA negotiations must be unique from both sides," the ambassador said offering Bangladesh joint exercise in negotiation skills and capacity building as the scope of FTA, how deeper it would be and advantageous side of two economies are important to understand in the FTA.
The Senior Secretary said though the country is looking forward in trade agreements, it has to be aware of revenue as well as backward industries before taking the decision on the FTA. He also laid importance on the in-depth study to look into these issues.
Presenting the survey findings, the JETRO Chief highlighted interests of both Japanese and Bangladesh companies operating in the country saying that 85 per cent respondents hope to have a bilateral FTA between Japan and Bangladesh to overcome difficulties to be faced after graduation from LDC in 2026 to retain competitiveness.
He said the overall response rate is 43.3 per cent but 70.4 per cent of respondents are from 100 Japanese companies operating in Bangladesh.
As the chairman of the joint survey committee Yuji Ando also said relocation of Japanese companies may take place after Bangladesh's graduation as 20 of the Japanese responded companies for competitiveness due to withdrawal of GSP.
The panellists focused on the details of the FTA and opined that FTA creates opportunities for foreign direct investment, export diversification, value chain supply, job creation, better wage and improving business environment etc.
The JCIAD Vice President said the FTA will help improve the business environment and requested the government to facilitate holding of the public-private economic dialogue between the two parties.
Dr Reaz said FTAs will help create more business opportunities with higher wage-oriented jobs, better economic development and standard upgrading in rules and regulations and better adaptation contributing to GDP.
smunima@yahoo.com
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