BD should pursue FTAs with more countries

Bangladesh should pursue free trade agreements (FTAs) with more countries to address the challenges of LDC graduation and attract more foreign investment.

Besides, its economic growth in the coming years should focus on quality and be driven by innovation, knowledge, and technology, areas where foreign companies can make significant contributions.

Businesspersons made this observation at a seminar styled as 'Korea-Bangladesh Economic Cooperation', hosted by the Foreign Investors' Chamber of Commerce & Industry (FICCI) in partnership with the Korean Embassy in Dhaka at a city hotel on Sunday.

Adviser to the Ministries of Industries and Housing & Public Works Adilur Rahman Khan attended the event as the chief guest while Executive Chairman of the Bangladesh Investment Development Authority (BIDA) and Bangladesh Economic Zones Authority (BEZA) Chowdhury Ashik Mahmud Bin Harun was present as a special guest. Ambassador of the Republic of Korea Park Young Sik and FICCI President Zaved Akhtar were also present.

Director General of the Korea Trade-Investment Promotion Agency (KOTRA) Samsoo Kim delivered the keynote speech at the event moderated by FICCI Executive Director TIM Nurul Kabir.

Adviser Adilur Rahman Khan said that a reform process has begun in the country to improve the ease of doing business and other areas.

"The expected reforms will take us a long way," he said.

Ashik Chowdhury said efforts are underway to launch a fully-fledged National Single Window in February of next year.

According to the keynote presentation, Bangladesh exported merchandise worth $677 million to Korea while importing $2.357 billion worth of goods from the East Asian nation in 2022, resulting in a significant trade deficit.

It also placed a set of recommendations to improve the investment climate, including easing taxation, establishing a rapid response cell for foreign investors, and digitising various trade-related processes to ensure transparency.

In his speech, Ambassador Park Young-sik emphasised the importance of Bangladesh signing FTAs to overcome the challenges associated with LDC graduation.

He said Bangladesh should prioritise not only the quantity but also the quality of its economic growth.

"The quality of economic growth must be driven by innovation, knowledge and technology areas where foreign companies can make substantial contributions," he said.

He gave a presentation that addressed the necessity of Korea-Bangladesh Economic Partnership Agreements (EPAs), the implications of Bangladesh's entry into the Regional Comprehensive Economic Partnership (RCEP) and offered recommendations for improving Bangladesh's FTA policies.

Korea has completed its domestic procedures to begin bilateral EPA negotiations with Bangladesh, the ambassador said, adding that Bangladesh is now in the final stage of completing its own domestic procedures.

Representatives from several Korean companies operating in Bangladesh, including Samsung, delivered presentations depicting the challenges of doing business in the country.

According to them, the business environment in Bangladesh faces multiple challenges that hinder growth and efficiency. Frequent external disruptions, often leading to violence and destruction, pose significant risks to stability.

Internally, bureaucratic hurdles like prolonged customs and licence procedures consume valuable time, creating obstacles for companies trying to operate smoothly, they said.

However, the positive aspects include a young and affordable workforce, an emerging garment supply chain, a strategic location for international trade, improved internet connectivity, and low rental costs, they pointed out.

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