CIS countries are the world's largest cotton-producing region. Can they help Bangladesh in producing quality cotton?
CIS countries are blessed with some of the finest cottons in the world.
These countries have the unique skill to increase production of cotton and also, they have a unique system which is favorable for better production of cotton.
We can refer to the cotton clusters of Uzbekistan. The privatization of Uzbekistan’s cotton sector has led to the establishment of so-called “cotton textile clusters” throughout the country designed to increase the added value in the cotton industry by boosting textile production and bringing together production, processing, and manufacturing.
That is being done under the control of private entities that enter into contractual agreements with farmers.
CIS countries can share their experiences with Bangladesh in this regard.
What are present trade relations between Bangladesh and CIS countries?
Currently, a Bangladeshi IT company is established in Tajikistan, another textile shop in Bishkek, Kyrgyzstan with goods made in Bangladesh, and a textile joint venture factory in Uzbekistan.
Bangladeshi investors can establish their entrepreneurships in CIS in the field of garments, textile, leather, jute, pharmaceutical and agriculture.
Bangladesh’s trade volume with the CIS countries, particularly Uzbekistan, Kyrgyzstan and Tajikistan are not so big but these countries hold immense potential. Bangladesh is now paying special attention to the expansion of trade between Bangladesh and these CIS countries.
The new Afghanistan government is struggling to restore peace and stability in the country. How can Bangladesh increase trade relations with the new Afghan government?
After 20 years Taliban has taken over the power in Afghanistan and the world communities are yet to recognize the Taliban regime in Kabul.
Bangladesh is closely also monitoring the situations in Afghanistan.
So, at this stage we need some more time to rethink the matter of increasing trade relations with the new Afghan government.
What are the present economic conditions of Uzbekistan and Kyrgyzstan? How can Bangladesh increase trade engagement with CIS countries?
Since 2017, Uzbekistan has made significant progress in transforming its economy and society.
The government is currently embarking on the next phase of reforms aimed at removing structural constraints such as the absence of factor markets and the state's economic dominance in the economy.
Despite the impact of the Covid-19 pandemic, thanks to reforms to liberalize prices and remove barriers to domestic and foreign trade, the country's economy was one of the few countries in the Europe and Central Asia region to avoid negative growth in 2020.
The country's GDP growth is expected to accelerate to 6.2% in 2021 as the government takes the necessary measures to mitigate the effects of the pandemic.
Success will depend on an improvement in the global economy and progress in structural reforms to increase private sector growth, reduce government dominance in the economy, and increase citizen engagement in economic relations.
The Kyrgyz Republic is a land-locked, lower-middle-income country.
It has rich endowments, including minerals, forests, arable land, and pastures, and has significant potential for the expansion of its agriculture sector, hydroelectricity production, and tourism industry.
Its economy is vulnerable to external shocks owing to its heavy dependence on remittances (25% of GDP) and gold production (about 10% of GDP and 40% of exports).
Increasing trade engagement with CIS countries can be done by holding bilateral meetings like foreign office consultation, Intergovernmental Commission Meeting on Trade and Economic Cooperation, concluding Agreements for Avoidance of Double Taxation, MoUs on cooperation in different fields, establishment of joint ventures in potential fields like textiles, pharmaceuticals, operate the direct passenger flights, participating in Trade fairs, organizing businessmen’s visit and arranging B2B meetings, exchange of educational and professional skills, distribution of promotional materials on trade, and more.
While CIS entrepreneurs are predominantly engaged in producing cotton yarn, automobiles, agriculture products, mining, textile, chemical, horticulture, animal husbandry and building materials, I think, sharing experiences will bring multifaceted benefits to the people of Bangladesh and CIS.
Entrepreneurs of both sides can help develop a solid relationship in many sectors.
There is a duty free access among the CIS countries. This congenial investment atmosphere can help set up joint ventures in CIS countries and export goods to big markets in CIS and the Russian Federation.
Contract farming is a contemporary issue. Can Bangladesh increase engagement with CIS countries in contract framing?
The Covid-19 pandemic is adversely impacting our narrow trade basket, our remittance is declining, apparel exports are facing stiff competition with our Asian neighbors, and more importantly, long-term food security for our vast population is likely to be risked, should we not open alternative avenues without delay.
Amid limited options, in my opinion, Bangladesh for the time being, should adopt a ‘Look at Central Asia’ policy aimed at strengthening our G2G contact with private participation.
In fact, total territory of the CIS is 22.1 million sq km, while a big chunk of area in each CIS country still remains untapped.
Each government, more or less, has liberal policies for foreign investors to better use the vast unused land of these countries.
As Bangladesh is a comparatively small country in area with nearly 170 million population, we need sound food security and need to look for new avenues in contact farming.
Bangladeshi entrepreneurs and investors can think of availing the liberal farming facilities being provided by the Central Asian countries in case of contact farming.
