Economists and policymakers on Monday said that coordination and a clear strategy was essential to get the European Union's GSP+ facility, while alongside readymade garments, other sectors must also adhere to compliance principles.
They made the observations at a virtual gathering titled "Towards a Transformed and Revitalized Trade and Economic Partnership with the EU: Issues and Priorities for Bangladesh" organized by the Research and Policy Integration for Development (RAPID) and FES Bangladesh, where they highlighted the EU as an indispensable trade partner.
Speaking at the event, program moderator Centre for Policy Dialogue (CPD) Distinguished Fellow Prof Mustafizur Rahman said the EU pointed out the sectors which needed development and gave advice on the matter.
He also said that the new GSP would be applicable for the next 10 years, but everyone needed to work together to take advantage of it.
Making a presentation, MA Razzaque, research director at the Policy Research Institute of Bangladesh (PRI), said that Bangladesh's total exports to the EU [27 countries] stood at $17.5 billion in 2020-21, increasing from just $2 billion in 2000-01. Of this, $15.9 billion or more than 90% was due to apparel items only.
The EU captures around 45% of the country's total exports and more than half of its apparel exports, he also said.
Razzaque also made some suggestions on how to get the GSP+ benefit, urging the need to develop a national-level consensus on the options about emerging issues and any policy shifts in the EU; sensitizing decision-makers and exporters about the new realities and trends; developing a longer-term strategy and action plan for strengthening Bangladesh-EU relations; and meeting challenges of conformity, sustainability and compliance head on.
Chief Guest Tapan Kanti Ghosh, senior commerce secretary, said the current GSP will end in December 2023.
"The government is negotiating to get the Generalized Scheme of Preferences Plus (GSP+). We have a lot of work to do. We need to develop products. If we can't develop products, we can't export. So we are emphasizing product development and working to create skilled human resources and provide quality education to students."
He said, apart from the garment industry, other products, such as electronics and automobiles, are also doing very well urging those be developed.
Rizwan Rahman, president of the Dhaka Chamber of Commerce and Industry (DCCI), said, "We need to increase inter-ministerial coordination to get GSP+ benefits and the government must negotiate to do so."
The EU is the single largest export destination of Bangladesh.
Once Bangladesh graduates to a middle-income country in 2026, it will have GSP for another three years, but then it will need to qualify for the GSP+ to continue duty-free benefits.
The European Commission has finalized the draft of the new GSP policy for 2024-34, which is expected to be approved next year.
If Bangladesh is ready for the European Union's GSP Plus facility, various protections ranging from additional duty exemptions for exports can be available post-transition.
Bangladesh must comply with 32 international conventions related to human rights and labor standards to receive this benefit.
