Dhaka: Chief Adviser's Special Envoy Lutfey Siddiqi has emphasized the importance of Bangladesh negotiating free trade agreements (FTAs) or economic partnership agreements with key countries as the nation faces an unavoidable graduation from its least developed country (LDC) status. "We have to negotiate free trade agreements or economic partnership agreements with key countries so that we obtain friction-free access to their markets," Siddiqi stated.
According to Bangladesh Sangbad Sangstha, Siddiqi delivered these remarks during his keynote speech at the ILO Asia-Pacific Conference on Labour and LDC Issues in Bangkok. He highlighted the necessity of comprehensive agreements that cover a variety of topics beyond tariffs, including labor standards and the movement of people. Siddiqi noted Bangladesh's ranking in terms of nominal GDP, landmass, and population, emphasizing the country's large, youthful population that is economically underpowered.
Siddiqi reflected on the dramatic uprising by Bangladesh's youth a year ago, which led to significant reforms and the opportunity for better governance. He pointed out that LDC status has provided Bangladesh with duty-free and quota-free access to developed markets, which has been particularly beneficial for the ready-made garments industry. This preferential access has also allowed Bangladesh to produce generic pharmaceuticals and access international finance at lower rates.
He acknowledged the challenges of transitioning to a post-LDC economy, given Bangladesh's reliance on LDC privileges. Siddiqi argued for embracing the opportunities of graduation, emphasizing the need for reforms and the attraction of investments. He also stressed the importance of diversifying exports, improving logistics, and focusing on skills and training to meet new demands.
Siddiqi mentioned ongoing negotiations with Japan for Bangladesh's first major FTA/EPA and the potential to send skilled workers there. He also highlighted the need to upgrade standards, especially labor standards, to maintain preferential access to markets like the European Union.
Labor sector reforms are crucial, Siddiqi noted, with a national-level Labour Reform Commission established to promote workplace dignity and decency. He mentioned the business community's support for these reforms due to their impact on export market access. Siddiqi expressed optimism about fulfilling obligations under the roadmap agreed with the ILO, both in legislation and labor relations conduct.