Country needs to diversify exports, destinations
Wednesday, 29 October 2008
FE Report
Bangladesh Ambassador to World Trade Organisation (WTO) in Geneva Debapriya Bhattacharya Tuesday said the country needs to diversify both its products and export destinations to weather the prevailing global financial downturn.
"The ready-made garment (RMG) is the only major product in the Bangladesh's export basket. It is vulnerable particularly in the prevailing global economic scenario," he said at a luncheon meeting in the city.
The American Chamber of Commerce in Bangladesh (AmCham) organised the meeting with its President Syed Ershad Ahmed in the chair.
Suggesting expansion of the agricultural sector, Dr. Bhattacharya said: "Agricultural trading system is still highly distorted, obstructing agricultural products' export. The country needs to give more efforts to export agricultural items."
Share of RMG in the country's total export earnings is about 80 per cent. Market share of Bangladesh's export to the currently dull US market is about 25 per cent and to the European market more than 46 per cent.
The ambassador to WTO gave importance to expanding the market of Bangladeshi products in big neighbour India and other South Asian countries.
"Focus more on service sector as trade in services would dominate tomorrow's global commerce," he urged the attending businessmen at the luncheon meeting.
Mr. Ershad Ahmed has sought help of the ambassador to take up the recent global economic slump issue to the WTO forum so that Bangladesh is not affected much.
Dr. Bhattacharya, also the permanent representative to UN offices in Geneva, said the Doha Round would be the last opportunity for Bangladesh to negotiate trade preferences as a least developed country (LDC) in the WTO.
"I believe Bangladesh would emerge as a middle-income country by the time when another round of WTO negotiation will begin", he expressed the hope adding, "The country will at least become a lower middle income country when it will celebrate its 50th anniversary of independence."
"In the meantime, a new round of WTO negotiations would be launched," he said.
The trade expert said the current Doha Round will be facing setback owing to the elections in the United States to be followed by those in the European Union and in India, and the current global financial downturn.
"The current negotiation will gain momentum early next year and take one year to conclude while another one year would be required for scheduling the decisions," he said adding, "we've targeted the year 2011 for completing our negations as the last opportunity in the WTO."
The former chief of the Centre for Policy Dialogue (CPD), said: "Trade related capacity building through Aid for Trade is a big challenge in the sense that it is difficult to ensure donors' assistance in additional and predictable manner."
"Bangladesh should put focus on infrastructure development projects like construction of Dhaka-Chittagong Highway, improvement in Mongla port activities, setting up of deep-sea port and installation of new power generation plants through donors' support,"
Underlining the Rules of Origin (RoO), Dr. Bhattacharya said: "It is more important than the tariff issue at this moment. Bangladesh and LDCs should press the developed and developing nations to implement LDC-friendly RoO."
The trade expert said it has by now become a little bit difficult for Bangladesh to get negotiating partners in the WTO as hardly any other country in the LDCs' group could boost their trade as significantly as Bangladesh had achieved since the WTO came into being in 1995.
Dr Bhattacharya said the country would have to find new partners in the next round of negotiations and to take preparations to face the emerging difficult situation.
Bangladesh Ambassador to World Trade Organisation (WTO) in Geneva Debapriya Bhattacharya Tuesday said the country needs to diversify both its products and export destinations to weather the prevailing global financial downturn.
"The ready-made garment (RMG) is the only major product in the Bangladesh's export basket. It is vulnerable particularly in the prevailing global economic scenario," he said at a luncheon meeting in the city.
The American Chamber of Commerce in Bangladesh (AmCham) organised the meeting with its President Syed Ershad Ahmed in the chair.
Suggesting expansion of the agricultural sector, Dr. Bhattacharya said: "Agricultural trading system is still highly distorted, obstructing agricultural products' export. The country needs to give more efforts to export agricultural items."
Share of RMG in the country's total export earnings is about 80 per cent. Market share of Bangladesh's export to the currently dull US market is about 25 per cent and to the European market more than 46 per cent.
The ambassador to WTO gave importance to expanding the market of Bangladeshi products in big neighbour India and other South Asian countries.
"Focus more on service sector as trade in services would dominate tomorrow's global commerce," he urged the attending businessmen at the luncheon meeting.
Mr. Ershad Ahmed has sought help of the ambassador to take up the recent global economic slump issue to the WTO forum so that Bangladesh is not affected much.
Dr. Bhattacharya, also the permanent representative to UN offices in Geneva, said the Doha Round would be the last opportunity for Bangladesh to negotiate trade preferences as a least developed country (LDC) in the WTO.
"I believe Bangladesh would emerge as a middle-income country by the time when another round of WTO negotiation will begin", he expressed the hope adding, "The country will at least become a lower middle income country when it will celebrate its 50th anniversary of independence."
"In the meantime, a new round of WTO negotiations would be launched," he said.
The trade expert said the current Doha Round will be facing setback owing to the elections in the United States to be followed by those in the European Union and in India, and the current global financial downturn.
"The current negotiation will gain momentum early next year and take one year to conclude while another one year would be required for scheduling the decisions," he said adding, "we've targeted the year 2011 for completing our negations as the last opportunity in the WTO."
The former chief of the Centre for Policy Dialogue (CPD), said: "Trade related capacity building through Aid for Trade is a big challenge in the sense that it is difficult to ensure donors' assistance in additional and predictable manner."
"Bangladesh should put focus on infrastructure development projects like construction of Dhaka-Chittagong Highway, improvement in Mongla port activities, setting up of deep-sea port and installation of new power generation plants through donors' support,"
Underlining the Rules of Origin (RoO), Dr. Bhattacharya said: "It is more important than the tariff issue at this moment. Bangladesh and LDCs should press the developed and developing nations to implement LDC-friendly RoO."
The trade expert said it has by now become a little bit difficult for Bangladesh to get negotiating partners in the WTO as hardly any other country in the LDCs' group could boost their trade as significantly as Bangladesh had achieved since the WTO came into being in 1995.
Dr Bhattacharya said the country would have to find new partners in the next round of negotiations and to take preparations to face the emerging difficult situation.