While preparing the Comprehensive Trade Policy the government should focus on the competitiveness of local industries both in domestic and international markets and diversification of products and markets for export growth and poverty reduction. It also has to address the existing inconsistencies within institutional and legal framework and recognise the measures to move forward. Speakers suggested such in a dialogue titled Bangladesh Trade Policy Framework for the Next Decade jointly organised by CPD and Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka on 3 July 2012 at Lake Shore Hotel, Dhaka. Dr Khondaker Golam Moazzem, Senior Research Fellow, CPD presented the keynote paper at the session where Dr M Osman Farruk, Former Minister and Member, Advisory Council of the Chairperson, BNP was present as the Special Guest. The session was chaired and moderated Mr Syed Manzur Elahi, Member, CPD Board of Trustees and Former Advisor to the Caretaker Government.
Dr Moazzem presented a brief review of the existing trade-related policies, analysed their impact and implications on growth and development, and suggested a framework for the proposed Comprehensive Trade Policy and the challenges associated with its implementation. The CPD study found a mixed impact of trade liberalisation on growth of the manufacturing sector over the last decades. Given the experience, the study suggested for undertaking a strategic trade policy where various policy instruments will be effectively used to ensure growth of specifically identified strategic sectors within a targeted time period.
Dr Farruk opined that it must be ensured that main purpose of the trade policy would be poverty reduction and employment generation. “There are 28 institutions related to export and import and there is no coordination among them. So, institutional coordination is crucial for a better trade policy,” he asserted.
Reflecting upon the critical aspects of the Comprehensive Trade Policy, Designated Discussant of the Session Dr Debapriya Bhattacharya, Distinguished Fellow, CPD opined that it is a matter of judgment how the various issues related to tariff, duties and negotiation skill will be brought under the proposed policy. He highlighted that the identification of potential sectors as strategically important sector through ensuring efficient utilisation of resources as a critical issue.
Dr Md Mozibur Rahman, Chairman, Bangladesh Tariff Commission (BTC) and Designated Discussant of the session informed that a committee headed by him is already working to frame the trade policy. He assured that the next trade policy would be in harmony with other related policies such as monetary, fiscal and exchange rate policies. He urged the stakeholders including the private sector to provide recommendations for the policy. He also mentioned that the draft policy is expected to be finalised by December 2012. In this connection Dr Rahman informed the dialogue that BTC has prepared an online world trade directory that include trade and tariff-related important information of all countries of the world.
The floor discussion highlighted the urgency for integration of all relevant policies in the proposed guideline framework so that it does not contradict with existing rules and regulations and other business principles. Speakers at the dialogue also mentioned that it will be challenging for the government to maintain balance between export-led growth and meeting domestic consumption and also to maximise benefits for employment, export and attracting FDI.