Editorial
Boosting export with a global sense
CA hits the nail on the head
WHILE inaugurating Dhaka International Trade Fair (DITF), 2008 Chief Adviser Fakhruddin Ahmed stressed the need for higher productivity and diversity of exportables in the face of the lifting of European Union embargo on import of Chinese garments from January 2008. Garments being the mainstay of our exports, exclusive dependence on it would be like putting all eggs in the basket in the changed circumstances with China enjoying competitive edge because of its total indigenous value addition to the their products.
In such a situation, we have to vigorously pursue four options to boost export-led growth. First, clearly there is no alternative to diversification of our export base with a spurt in production and promotion of nontraditional exportables such as agro-processed commodities in the fruit, cut flower and vegetable sub-sector, indigenous tiles, honey, poultry, cane furniture and a whole range of handicrafts.
Secondly, to tackle the post-MFA phase in the garment sector backward linkages will have to be extensively built up with private sector investment and banks' financial assistance so as to enhance our local value addition to the garment sector to be more competitive in pricing and quality. Meanwhile, to break new grounds, we have to approach the Japanese and other potential markets with our garment products.
Thirdly, a powerful impetus to our exports can come if we gain duty free access to markets of developed countries for which orchestrated efforts need to be made by the LDCs.
Finally, our negotiating capabilities in the regional and international forums leave much room for improvement in terms of preparing our cases, their presentation and negotiating favourable terms for us. What is extremely important is not just to associate private sector expertise including NRB know-how with the cases we make out in the multilateral commercial system of the World Trade Organisation (WTO) but also to give it due weightage.
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