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In a decisive move to strengthen trade relations, the Ministry of Commerce here has placed emphasis on finalising the much-trumpeted Free Trade Agreement (FTA) with China.
Commerce secretary Md Selim Uddin reiterated the interim government's commitment to this initiative during the 11th Trade and Investment Working Committee meeting on Sunday.
The meeting at the ministry focused on simplifying business registration and licensing requirements as well as exploring alternatives to cash incentives in light of Bangladesh's upcoming LDC graduation.
The secretary underscored the importance of fast-tracking the agreement with China, viewing it as a critical step towards boosting Bangladesh's trade competitiveness on the global stage.
As Bangladesh prepares to graduate from its least developed country (LDC) status, trade relations with major partners like China are expected to play a vital role in mitigating the loss of preferential market access.
Beyond the FTA talks, the meeting addressed several challenges entrepreneurs face in obtaining trade licences and registration for new businesses.
Kanis Fatama, senior research associate of Business Initiative Leading Development (BUILD), presented a policy paper highlighting cumbersome as well as costly procedures imposed by local government agencies, as per the Local Government Act 2009.
Entrepreneurs are saddled with multiple layers of licensing, initial registration, and approval that complicate the business environment and discourage investment, according to her.
The BUILD proposed a comprehensive reform to streamline registration processes, suggesting the introduction of online primary business registration issued by a single authority, similar to the system in Singapore.
Anwar Pasha, joint secretary and administrator of the Chittagong Chamber of Commerce and Industry, supported the recommendation by proposing a working group involving all stakeholders concerned.
The commerce secretary-led group will review the BUILD study and work on implementing a unified system for issuing trade licences.
The discussion also turned to post-LDC graduation strategies, particularly concerning the phase-out of cash incentives for exporters.
BUILD CEO Ferdaus Ara Begum presented a study styled 'Export Growth Targets & Supportive Policies for Sustenance in the Post-LDC Regime'.
The study focused on WTO-compliant alternatives to direct cash incentives, which will no longer be permissible after LDC graduation.
Highlighting recent reductions in cash subsidies by the Bangladesh Bank, Ms Ferdaus Ara warned of the negative impact on export sectors and called for the introduction of allowable support such as tax benefit, infrastructure development, and cheaper access to loans and land.
Representatives from key export sectors echoed these concerns.
Ibnul Wara, a member of the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh, and Mostofa Monwar Bhuiyan, director of the Bangladesh Knitwear Manufacturers and Exporters Association, also addressed the event.
They urged the government to continue cash incentive facility until Bangladesh's formal LDC graduation to give industries time to build capacity and address compliance challenges.
MCCI president Kamran T Rahman endorsed these recommendations and called for a detailed study on policies that would encourage the greater use of green and renewable energy by industries, particularly exporters.
He underscored that Bangladesh achieve 40 per cent of its electricity consumption from renewable energy by 2030 and reach net-zero emissions by 2050.
Mr Rahman proposed exploring corporate purchase frameworks to supply factories with renewable energy through the national grid.
Other stakeholders, including Md Anwar Hossain, vice-chairman of the Export Promotion Bureau, and Nurul Islam, CEO of the Bangladesh Textile Association, stressed the need for modernising compliance processes through technology.
Mr Islam suggested that funds from the Green Transformation Fund be utilised to help industries adopt new technologies and meet global compliance standards.
The meeting concluded with a commitment from the ministry to explore app-based systems to streamline services for the private sector.
Mohammad Navid Safiullah, additional secretary of the export wing, praised the BUILD studies and emphasised reduction in the cost of doing business in the post-LDC graduation phase.
Representatives from various agencies, including the Registrar of Joint Stock Companies and Firms, Bangladesh Garment Manufacturers and Exporters Association, and other business groups, participated in the talks.
The meeting ended with a call for coordinated efforts among government bodies to implement the proposed reforms and support the private sector as it navigates the challenges of LDC graduation.