Experts and trade body leaders in a dialogue on Saturday said that comprehensive export and trade policy reform has been a very vital at the moment to boost export competitiveness in the post-Covid situation.
Resurgent Bangladesh, an economic recovery imitative put together by MCCI, DCCI, Chittagong Stock Exchange Ltd., BUILD, and Policy Exchange organised the dialogue on “International Trade in Covid Times: Impact and Way Forward for Bangladesh” on Saturday.
Tofail Ahmed, MP, Chairman, Parliamentary Standing Committee on Ministry of Commerce Joined as the chief guest.
Addressing as chief guest, Tofail Ahmed said that the export target was hit hard by Covid pandemic. Export earning was USD 45 billion last fiscal and this year the export target is fixed at USD 63 billion including service sector, he informed.
“ A total of 8256 products got duty free access in the Chinese market and it will give us USD 2.5 billion more export earnings. At present the poverty level increased due to Covid, but with the help of vibrant private sector we will be able to recover the condition soon, ” Tofail Ahmed, former Commerce Minister added.
Shams Mahmud, President, DCCI presented the keynote paper in the dialogue.
He highlighted that IMF projects global economy would contract by 3% in 2020 while the World Bank projects decline by 2.1%-3.9%. ADB derives that the global economy could lose between $5.8 trillion and $8.8 trillion of the global GDP. WTO estimated that world merchandise trade may fall between 13% and 32% this year and whereas UNCTAD estimated it as 20%.
“In Bangladesh total export was USD33.67 billion which is 25.99% less than the target and 16.93% less than FY2018-19. Import during July-May of FY2019-20 fell by 10.81%. WB projects GDP growth of Bangladesh will be reduced to 2%-3%. In future, for LDCs GSP and DFQF facility in developed countries may be limited”, Mahmud said.
Abul Kasem Khan, Chairperson, BUILD in his welcome remarks said the worldwide impact of Covid is severe. According to an estimate of UNCTAD international trade may experience a loss of about USD 2.6 to 6 trillion.
“And in Bangladesh, trade loss may reach from USD 9-21 billion. Due to Covid situation, window of opportunity will be opened for Bangladesh but we need to be competitive in terms of trade especially in the ease of doing business index. If we fail to be competitive, the window of opportunity will not be open for a long time for us”, he said.
Prof. Dr. Mustafizur Rahman, Distinguished Fellow, CPD said after LDC graduation Bangladesh will have to export its products giving 12% duty whereas Vietnam will enjoy zero tariff. Vietnam exported USD262 billion last year whereas Bangladesh’s export earning was only USD40 billion.
“We need to turn comparative advantage into competitive advantage. Emphasizing on export diversification he stressed on grabbing regional market, effective implementation of BBIN, one belt, one road initiative”, he added.
Syed Nasim Manzur, Managing Director, Apex Footwear Ltd. said in Bangladesh service sector contributes 52% of our economy so we cannot ignore this sector. He said our export was not so good before Covid situation as well.
Wahidur Rahman Sharif, Managing Director, Digicon Technologies Ltd. and President, BACCO said in the IT and ITES sector 80% to 90% of businesses internationally have come down and locally it is hovering between 50%-60%. Due to Covid situation e-commerce sees a remarkable growth recently.
Nayeemur Rahman, Head of Business Planning, Uttara Motors Ltd. said congestion in the port is a concern and it increases cost of doing business. One third of sales in the automobile sector have been declined in the covid time.
Dr. M. Masrur Reaz, Chairman, Policy Exchange said that first of all we need to identify the risk factors. Bangladesh has to exploit of global demand in a post-covid time, he added. To attract FDI, comprehensive trade and investment policies will play a key role, he added.
“Bonded warehouse facility to non-RMG sector will help other sectors to be more competitive in terms of export, he said. Technology adaptation and upgradation strategy needs to be streamlined” he further said.
Barrister Nihad Kabir, President, MCCI said if the honourable Prime Minister along with stakeholders from business community and concerned Ministers sit regularly in every two or three months it will help to streamline necessary measures and solve all problems faced by the businesses.
NKA Mobin, FCA, FCS, Senior Vice President, DCCI, Waqar Ahmad Choudhury, Director and Former Senior Vice President, DCCI and former Director, DCCI Barrister Sameer Sattar also spoke on the occasion.
