DCCI wants transition strategy for smooth LDC graduation

The Dhaka Chamber of commerce and Industries (DCCI) has urged the government to work with the private sector to formulate a transition strategy for a smooth LDC graduation and address post-LDC era issues.

The recently-elected DCCI Board of Directors, led by its President Md Sameer Sattar, made the call during a meeting with Commerce Minister Tipu Munshi at his secretariat office in the capital on Monday.

Sameer said that after LDC graduation, Bangladesh will lose the preferential market accesses and face an 8-16 per cent export tariff as a developing country in different export destinations and markets.

To overcome the likely loss, he said, the formulation of the transition strategy in collaboration with the private sector has become a priority.

He also said that Bangladesh needs to sign FTAs with more potential countries and important economic blocs to offset the loss of preferential market access.

“Currently, our export market is largely confined to the markets in the United States and the European Union. But new market development in Southeast Asia and the Africa regions needs to be prioritised along with product diversification,” he added.

“Moreover, we can negotiate with other countries to increase duty and quota-free access to Bangladesh after LDC graduation,” Sameer said.

During the meeting, the commerce minister said, “We will focus on signing PTAs and FTAs with potential partners after LDC graduation. But to avail international support measures, we will have to enhance our negotiation skills.

“The government is relentlessly working on sustaining a business-friendly environment, required policy reforms and infrastructure development in the country.”

The DCCI president also underscored the importance of reducing the existing import tariff rate, which is relatively higher than other countries in the region. “This is because, after 2026, we will need a competitive and open tariff system to compete in the international market.”

Looking ahead, he said that the government needs to consider as well the sustenance of the supply chain of essential commodities during Ramadan at an affordable price amidst the current inflationary stress.

He continued, “To keep prices of daily commodities affordable and keep the inflation under control, NBR may consider giving certain tax benefits to importers during Ramadan.”

Furthermore, to increase business efficiency and ease, Sameer suggested setting up a separate court for quick disposal of commercial disputes and bringing necessary amendments to the Arbitration Act 2001.

DCCI Senior Vice President SM Golam Faruk Alamgir Arman, Vice President Md Junaed Ibna Ali and other members of the Board of Directors were also present during the meeting.