Demand for FTA and PTA to maintain exports
Bangladesh will face some challenges in international trade after transitioning from Least Developed Country (LDC) in 2026. For example, Bangladesh will not be able to provide cash assistance to export goods.
The tax exemptions currently being given should also be reduced. Supplementary duties at the import level should be eliminated and reduced if they are inconsistent with World Trade Organization (WTO) regulations.
Due to these reasons, Bangladesh’s export competitiveness may decrease. Along with this, there is also a risk of decrease in revenue. Now is the time to find an alternative.
These words came out in the workshop of the National Committee headed by the Chief Secretary to the Prime Minister on the preparation, planning, implementation and supervision of the challenges that Bangladesh will have to face after the transition from LDC. The workshop was held on Saturday in the Finance Department of the Ministry of Finance. These things were informed yesterday in a notification of the Ministry of Finance.
Prime Minister’s Principal Secretary Ahmad Kaykaus was the chief guest at the workshop chaired by Finance Secretary Fatima Yasmin. Among the participants was the president of FBCCI, the top organization of businessmen. Jasim Uddin and BGMEA President Farooq Hasan.
Bangladesh Institute of Development Research (BIDS) Director General Binayak Sen and Policy Research Institute (PRI) Chairman Zaidi Sattar and others. Bangladesh Bank Governor Abdur Rauf Talukder, Chairman of National Board of Revenue Abu Hena Md. were panelists. Rahmatul Munim and Commerce Secretary Tapan Kanti Ghosh.
According to the notification, it has been recommended to remove the condition of local value addition in the sectors currently receiving cash assistance after transitioning from LDCs to developing countries.
It has been said that the duty and quota free benefits currently available as LDCs will not be there in the case of exports. So Free Trade Agreement (FTA) or Preferential Trade Agreement (PTA) should be done with different countries. Apart from this, it is recommended to increase automation in revenue administration by identifying unnecessary areas of tax exemption.