To increase product diversities and reduce the dependency on ready-made, the government is working by targeting 19 potential export products of the country.
To give more importance to export products, the Prime Minister declares a potential export product as 'Product of the Year' every year.
The Ministry of Commerce is already working in a planned manner to develop the four export products sectors in Leather Goods, Plastics, Information Technology and Light Engineering through a project called EC4J (Export Competitiveness for Jobs) with the support of the World Bank.
Commerce minister Tipu Munshi said this at a webinar on ‘Diversification of Bangladesh’s Export Basket: Opportunities and Challenges’ organized by the Institute of Chartered Accountants of Bangladesh (ICAB) on Saturday. ICAB Council Member and Past President Adeeb H Khan FCA moderated the webinar while Shubhashish Bose, Chief Executive Officer of ICAB and Former Senior Secretary presented the keynote paper.
Commerce Minister said, “Export earnings have crucial effects on our investment, GDP growth, real exchange rate, unemployment, government revenue and expenditure. Diversification of export is the highest priority area of our government. And in that view providing subsidy to encourage exports to a number of products. It is also implementing 100 new EPZs for boosting export”.
He said, “We are graduated from least developed country (LDC) to a developing country. With this new tag of middle income country, Bangladesh will loose the right of getting low interest loans and other trade benefits, he said adding that there is no alternative to export diversification for rapid growth rate”.
Ministry of Commerce is working on to make active of our embassies and foreign missions to expand the export market of Bangladeshi products.
He further said that the ministry of commerce is trying to make Bangladesh’s embassies and foreign missions activities dynamic and diverse in order to survive in a rapidly changing and competitive world trade system.
The minister said, Ministry of Commerce has formulated Gold policy to announce a product of the year so that we can give more on centration on the product flourish. We have also framed policy on API and leather and leather goods to facilitate the exporters.
To enhance export of products and services from Bangladesh, the country must have to explore untapped markets in Commonwealth of Independent States (CIS), Latin America and African regions instead of concentrating only on two areas -European Union including the UK, and the USA.
The African continent has the least market share for us. But a huge opportunity lies there. There are fourteen SADC countries in the continent. The SADC is a bloc, a common customs union which could be a gateway to 290 million people. If a product enters into a member-country, it can easily travel to other countries without facing customs problems. So efforts are necessary to conclude preferential trading agreement or free trade agreement with African countries.
Under generalized system preference 80 percent of Bangladeshi products on duty free, enter in 27 countries of European Union, Australia, New Zealand, Norway, Switzerland , UK, Turkey, Canada and Russia, said the keynote speaker Shubhashish Bose.
He said, although geographic location of the country is ideal for global trades with very convenient access to international sea and air routes, Bangladesh is facing negative impression in export-import balance of trade. Currently the country is facing trade deficit US$ 15000 million.
Exportable six major items are woven garments, knit garments, leather & leather products, jute & jute Goods, agricultural products, frozen foods and constituted 92 percent of our total export during 2019-20 fiscal year, he said adding that IT Sector , Pharmaceutical Products , Ocean going Ship Building Industry , Light Engineering Sector Ceramic and porcelain wares are thrust sectors deserve more attention to bag more foreign currency.
Among other Md. Jafar Uddin, Senior Secretary, Ministry of Commerce, ICAB Vice President Maria Howlader FCA, Md. Mostaque Hassan, ndc, Chairman, Bangladesh Small and Cottage Industries Corporation (BSCIC), A. H. M. Ahsan, Vice Chairman & CEO of the Export Promotion Bureau (EPB), Bangladesh , A F M Fakhrul Islam Munshi, President, Bangladesh Agro-Processors' Association – BAPA, Faruque Hassan, President, The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Golam Ahsan, President, Bangladesh Handicrafts Manufactures & Exporters Association (BANGLACRAFT), Md. Saiful Islam, President, Leather goods & Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) and Vice President, Bangladesh Ship Builders Association, Mohd. Shafiqul Islam, Chairman, Bangladesh Jute Goods Exporters’ Association (BJGEA) and Syed Almas Kabir, President, Bangladesh Association of Software and Information Services (BASIS).
