Dhaka needs to 'diversify export destinations to avoid recession'
Tuesday, 7 April 2009
FE Report
A director of the World Trade Organisation (WTO) Monday in Dhaka said Bangladesh needs to seek for potential export markets in developing nations other than the traditional countries to face any adverse impact of the global economic meltdown.
"As Bangladesh heavily depends on exports to the recession affected US and European markets, it is in a vulnerable position like other least developed countries (LDCs)," said Shishir Priyadarshi, director for development division in WTO, Geneva.
"If you (Bangladesh) cannot diversify your export destinations you will be affected by the global downturn," he said at a dialogue on "Ongoing WTO and Doha round negotiations: concerns and interests of Bangladesh and other LDCs" in Dhaka.
The local research firm Centre for Policy Dialogue (CPD) organised the function with its executive director Mustafizur Rahman in the chair.
Mr. Priyadarshi and CPD fellow Debapriya Bhattacharya presented two separate keynote papers at the dialogue.
The WTO director Mr Priyadarshi said: "Bangladesh's exports to the developing countries accounts for around 10 per cent of the total LDC exports. It is far less than the average 45 per cent export of other LDCs to the developing nations."
"It is a warning from me that the global trade will decline by 9.0 per cent in 2009 due to effects of the economic dip. Bangladesh should prepare itself now to face the challenges that lie ahead," he said.
The WTO executive said Bangladesh's textile industry's profit margin is very low. "With this low profit margin you will not sustain in the shrinking global trade market in the coming days."
He suggested that Bangladesh should try to secure duty-free quota-free market access to the developing nations and aid for trade facilities in a bid to weather the upcoming economic challenges.
"I did not know why the country had not been bargaining with the developed world to get the aid for trade benefits though there were possibilities to get more funds through the arrangement," he said adding, "Bangladesh gets a negligible 2.0 per cent of the total disbursed aid for trade fund in the world."
Debapriya said political outreach, research and analysis, coordination and capacity building were essential for getting the benefit from the next WTO negotiations.
If the country does not move together with other the SAARC countries and does not boost relations with the African LDCs, it would fail to achieve the desired benefits from the WTO, he said.
Mr. Debapriya suggested the government to go for public-private partnership to lobby in the WTO forum saying the noble-prize-laureate Dr. Muhammad Yunus and some other personalities could be engaged as goodwill ambassadors to bargain for the benefits from the forum.
Former finance minister M Syeduzzaman, Canadian High Commission in Bangladesh Robert Mcdougal and others spoke on the occasion.
A director of the World Trade Organisation (WTO) Monday in Dhaka said Bangladesh needs to seek for potential export markets in developing nations other than the traditional countries to face any adverse impact of the global economic meltdown.
"As Bangladesh heavily depends on exports to the recession affected US and European markets, it is in a vulnerable position like other least developed countries (LDCs)," said Shishir Priyadarshi, director for development division in WTO, Geneva.
"If you (Bangladesh) cannot diversify your export destinations you will be affected by the global downturn," he said at a dialogue on "Ongoing WTO and Doha round negotiations: concerns and interests of Bangladesh and other LDCs" in Dhaka.
The local research firm Centre for Policy Dialogue (CPD) organised the function with its executive director Mustafizur Rahman in the chair.
Mr. Priyadarshi and CPD fellow Debapriya Bhattacharya presented two separate keynote papers at the dialogue.
The WTO director Mr Priyadarshi said: "Bangladesh's exports to the developing countries accounts for around 10 per cent of the total LDC exports. It is far less than the average 45 per cent export of other LDCs to the developing nations."
"It is a warning from me that the global trade will decline by 9.0 per cent in 2009 due to effects of the economic dip. Bangladesh should prepare itself now to face the challenges that lie ahead," he said.
The WTO executive said Bangladesh's textile industry's profit margin is very low. "With this low profit margin you will not sustain in the shrinking global trade market in the coming days."
He suggested that Bangladesh should try to secure duty-free quota-free market access to the developing nations and aid for trade facilities in a bid to weather the upcoming economic challenges.
"I did not know why the country had not been bargaining with the developed world to get the aid for trade benefits though there were possibilities to get more funds through the arrangement," he said adding, "Bangladesh gets a negligible 2.0 per cent of the total disbursed aid for trade fund in the world."
Debapriya said political outreach, research and analysis, coordination and capacity building were essential for getting the benefit from the next WTO negotiations.
If the country does not move together with other the SAARC countries and does not boost relations with the African LDCs, it would fail to achieve the desired benefits from the WTO, he said.
Mr. Debapriya suggested the government to go for public-private partnership to lobby in the WTO forum saying the noble-prize-laureate Dr. Muhammad Yunus and some other personalities could be engaged as goodwill ambassadors to bargain for the benefits from the forum.
Former finance minister M Syeduzzaman, Canadian High Commission in Bangladesh Robert Mcdougal and others spoke on the occasion.