Speakers at a dialogue have called for signing a Comprehensive Economic Partnership Agreement (CEPA) between Bangladesh and Korea for further enhancing bilateral economic cooperation in terms of Free Trade Agreement, investment and services.
The Centre for Policy Dialogue (CPD) and Embassy of South Korea jointly organised the dialogue styled “Korean Development Experience: Lessons for Bangladesh” at a city hotel yesterday.
The dialogue aimed at sharing experience of Korean development strategy with Bangladeshi counterpart.
Speaking as chief guest, Commerce Minister Tofail Ahmed urged the Korean government to relax the rules of origin for Bangladeshi products, as, what he said, it was very tough to meet the current value addition.
“Although Korea provides duty free market access to major Bangladeshi products under its Generalised System of Preferences (GSP) scheme for the least developed countries (LDCs), Bangladesh is yet to reap the maximum benefits due to the existing higher Rules of Origin (RoO),”said Tofail.
Pressing the Korean government for reducing the level of RoO, the minister noted that there were opportunities for further bolstering the regional value chain between East Asia and South Asia, where Bangladesh can play an effective role.
“If Bangladesh could form Free Trade Agreement (FTA) with Korea, its economy would be more competitive, firstly, by enjoying the benefit at par with those of other south East Asian Countries, secondly, it would be better competitive over those of other supplying countries currently providing same or higher level of tariff Vis-à-vis (face to face) those of Bangladesh products,” said KhondakerGolamMoazzem, an additional research director of CPD while presenting his paper.
During his presentation Moazzem said: “Thereare scope for enhancing export of both traditional and non-traditional products are significant if RoO becomes flexible and preferential market access extended to other products.”
Korean investment in Bangladesh would be accelerated if a regional value chain operated between countries of East Asia and South Asia while the scope for enhancing temporary migration to Korea particularly for skilled workers, said Moazzem.
By signing FTA, Bangladesh could attract Korean investment in the value chains being operated between Korea, China, India and ASEAN countries. Korea’s strong manufacturing base in SME related industries could also benefit Bangladesh as well as, he added.
Among many reasons for the Korea’s miracle, it would be worthwhile how Korea has made use of the global trend of economic integration with liberal trade policies including the ambitious FTA initiatives extending its economic space, because Bangladesh needs new markets and new export items to ensure sustainable economic growth for the national agenda, “Middle Income Country by 2021”, said Lee Yun-Young, Korean ambassador to Bangladesh.
Professor Moosung Kang, division of international studies of Korea University, explained how they achieved economic growth through FTA, export-led industrialisation, heavyweight industry and attracted foreign direct investment (FDI) and over come economic crises.
According to the data of Export Promotion Bureau (EPB) and the central bank, Bangladesh exported goods worth $345m in the last fiscal year, which was $250bn in 2012-13. FBCCI President KaziAkramUddin Ahmed wasalso present at the programme.
