free trade agreements
Speakers for replicating RMG success model to boost plastic sector
For a sustainable development of plastic sector in post-LDC era, speakers in a webinar have urged to ease duty structure on import of plastic raw materials, modernization of respective policies, encouraging uses of bio-plastic, signing of Free Trade Agreements (FTAs)or Preferential trade arrangements (PTAs) with potential countries.
They sought some initiatives for booming plastic business and attracting foreign direct investment (FDI) on priority basis for increasing negotiation skills to protect the domestic market, bringing product diversification, development of plastic waste management system, technological advancement, enhancing accredited world class testing lab facilities, and innovative product designing.
Speakers put emphasis on these issues at a webinar on “Sustainable export growth in post-LDC world: strategies for the plastic sector” organized by Dhaka Chamber of Commerce & Industry (DCCI) on Saturday.
Principal Secretary to the Prime Minister Dr. Ahmad Kaikaus joined the webinar as the chief guest. DCCI President Rizwan Rahman chaired the event. FBCCI President Md. Jashim Uddin joined as special guest.
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Dr. Ahmad Kaikaus said that the existing nexus between the public and private sector is stronger than ever that leads Bangladesh to a new height.
In order to identify various prospects and challenges in the plastic sector, he suggested forming a national taskforce combining public and private sector participation.
He also urged for a better plastic waste management solution.
Rizwan Rahman, in his opening remarks said that the plastic sector witnessed a rapid commercialization and became an important export item of Bangladesh.
Export of plastic goods contributes 0.33 percent to the GDP. Around 5,110 companies are operational in the plastic sector and 98 percent of them are SMEs, he mentioned.
“To ensure sustainable industrial growth, a draft Plastic Policy was developed by the Government. Since many preferences will not exist in the post-LDC era, FTA and RTAs can be signed with the potential countries,” the DCCI president said.
“We need to replicate the RMG success model to other export-led manufacturing sectors as well. Product diversification is essential while changing raw materials to recycled plastic waste as a viable alternative,” he added.
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Md. Jashim Uddin, President, FBCCI, Shamim Ahmed, President, Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), Dr. Md. Shahidul Islam, NBR Member (Customs), Dr. Ijaz Hossain, retired professor of Chemical Engineering, BUET, among others, spoke in the function.
Bangladesh prepares to face challenges after transition from LDC
Bangladesh is focusing on bilateral free and preferential trade deals as a strategy to overcome the possible losses of global trade concessions after its graduation to a developing economy.
Studies on the feasibility of signing Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) with a number of countries have been completed, according to an official document.
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The countries and organisations include Malaysia, Vietnam, Thailand, Japan and Eurasian Economic Commission.
The possibility of Bangladesh signing such trade agreements with China, Myanmar, Nigeria, Mali, Macedonia, Mauritius, Jordan, USA, Iraq and Lebanon is also being explored.
Meanwhile, a Comprehensive Economic Partnership Agreement (CEPA) between Bangladesh and India is also on the anvil.
Bangladesh Foreign Trade Institute (BFTI) and Indian Foreign Trade Institute are preparing a report on a joint study on CEPA.
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The CEPA is a bit different from FTAs as it covers a lot of issues such as trade in goods and services, investment, intellectual property rights and e-commerce.
Bangladesh has signed a bilateral PTA with Bhutan on December 6, 2020. Under the agreement, 34 Bhutanese products will get duty-free access to the Bangladeshi market and 100 Bangladesh products to get similar access to Bhutan.
The commodities from Bangladesh include baby clothes and clothing accessories, men's trousers and shorts, jackets and blazers, jute and jute goods, leather and leather goods, dry cell battery, fan, watch, potato, condensed milk, cement, toothbrush, plywood, particle board, mineral and carbonated water, green tea, orange juice, pineapple juice, and guava juice.
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The 34 products from Bhutan that will get duty-free access to the Bangladesh market include orange, apple, ginger, fruit juice, milk, natural honey, wheat flour, homogenised preparations of jams, fruit jellies, marmalades, food preparations of soybeans, mineral water, wheat bran, quartzite, cement clinker, limestone, wooden particle boards, and wooden furniture.
Both the countries will be able to increase the number of items gradually through consultation.
PTA negotiations with Nepal are at the final stage.
Read BGMEA discusses export, FDI opportunities with Bangladesh envoy
Bangladesh must focus on FTAs with major trading countries: ICC,B President
International Chamber of Commerce, Bangladesh (ICC,B) President Mahbubur Rahman has said Bangladesh must focus on free trade agreements (FTAs) with major trading countries to address the challenges in the coming years.