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Lowering trade cost through easing customs procedure and further improvement in investment climate and skill development are imperative for Bangladesh to cope with the challenges stemming from graduation from the Least Developed Country (LDC) category, speakers observed at a seminar on Monday.
They also viewed that signing free trade agreement with more countries, fetching higher foreign investment and improving labour rights situation are also vital in this regard.
The seminar titled 'LDC Graduation of Bangladesh: Challenges and Opportunities' was organised by the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) at its office in the city's Paltan area.
Bangladesh Trade and Tariff Commission (BTTC) Chairman Ahmed Munirus Saleheen was present as the chief guest in the seminar.
President of SAARC Chamber of Commerce and Industry Md Jashim Uddin and Senior Vice President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Md Amin Helaly were present as special guests.
BTTC former member Dr Mustafa Abid Khan presented keynote paper in the seminar presided over by BPGMEA President Mr Shamim Ahmed.
In his speech, Mr Munirus Saleheen said the government is committed to protecting the local industries.
He also emphasised enhancing productivity and competitiveness to face the post-graduation situation.
In the keynote paper, Dr Mostafa Abid Khan said after the LDC graduation in 2026, Bangladesh would lose duty-free market access in developed and some developing countries, GSP benefits in most developed countries and face less availability of technical cooperation and other forms of support.
"To overcome this situation, we have to reduce trade cost by simplifying customs clearance procedure for smooth operation of domestic industries, increasing revenue mobilisation for massive investment in physical infrastructure, education, health sector, increasing investment in human resources in both public and private sectors," he said.
Foreign direct investment (FDI), tariff, labour, environment, and investment climate should be improved and products should be diversified, he added.
Mr Jashim Uddin highlighted the necessity of ensuring compliance in both export and non-export oriented sectors.
He proposed setting up a separate government agency for compliance.
Referring to the comprehensive reforms of NBR, he said that the desired results will not be achieved with the current NBR.
He also said skill development is very necessary to meet the future necessities.
Shamim Ahmed said after the LDC graduation Bangladesh may face an 8.0 to 10 percent reduction in its total export earnings, which could amount to about $ 2.5 billion annually, due to the loss of duty-free, quota-free access to the European market.
After the LDC graduation, the subsidy programme in Bangladesh's agriculture should be more transparent and limited, he said.
Bangladesh should ink FTAs for conducting trade with other countries, he said, adding that anti-dumping, countervailing and safeguard duties will be the only way to avoid invasion of foreign products at that time.
Therefore, appropriate initiatives should be taken by the government authorities concerned to encourage local industries to adopt those safety measures without applying for SD, RD and tariff benefits.
Mr Amin Helaly said the National Board of Revenue (NBR) should formulate creative policies to promote private sector and the present tax regime should be improved.
"Small and medium industries may disappear due to the current short-sighted tax system," he added.