The Dhaka Chamber of Commerce Industry (DCCI) has recommended the government to sign FTA, PTA with potential countries, and RTA with the economic blocs, in an effort to overcome the challenges and ensure country's smooth transition to a developing one.
It also suggested taking preparations to implement the terms and conditions of TRIPS agreements, establishing high-value product design and innovation centres with disruptive technology, international quality assurance certification, new market development especially in the Southeast Asia, Africa, necessary policy and institutional reforms to increase private and foreign investment, modernization, automation of revenue structure for higher tax to GDP ratio and efficient supply chain and logistics infrastructure.
These are expected to leverage economic graduation and gain its dividends for the best interests of the country, the DCCI said in a press release.
The United Nations Committee for Development Policy (UN CDP) has recommended Bangladesh's graduation from Least Developed Country (LDC). The decision came after the second triennial review of the LDC category of UN CDP recently.
Bangladesh has met, for the second time, all three eligibility criteria for graduation involving income per capita ($1,827 against the threshold $1,230), human assets index (75.3 points out of 66), and economic vulnerability index (27.3 point less than 32).
The release also said the DCCI feels it as an honour for Bangladesh as it received the prestigious recognition in the glorious year of golden jubilee of independence and birth centenary of Bangabandhu Sheikh Mujibur Rahman.
Besides, the recognition was achieved with the frontier and dynamic leadership of Prime Minister Sheikh Hasina, through tremendous progress in all aspects of socio-economic state of the country during the last decade.
Bangladesh, even in the tough time during the Covid-19, managed to sustain its economic growth and balance the live and livelihood to a large extent. The very timely initiative of the government to rescue the pandemic affected businesses through stimulus incentives was appreciated by all. The second review of UN CDP and their endorsement justify consistent economic development, firm resilience and commitment to the legacy of Bangabandhu's Sonar Bangla aligning with various game-changing visions of the government, believed DCCI.
It is inevitable that every country graduates from LDC status had to face some challenges with no exception to Bangladesh.
As an LDC, Bangladesh will enjoy duty free quota free access in the EU and other market up to 2026 but later graduation, Bangladesh will face the challenges of industrial compliance and strong standard of IPR and TRIPS agreement. Moreover, as a Middle income country, Bangladesh will compete with other similar countries in the export market as well experience erosion of preferences and privileges in the export market, loss of subsidy in various home grown infant industries.
Despite having these challenges, DCCI thinks that graduation will generate ample of opportunities.
After the successful graduation, the credit rating and worthiness of Bangladesh will be elevated, private sector would be competitive, foreign investors' confidence and foreign investment trend would soar considering strong IPR infrastructure above all streams of international borrowing at a competitive rate.