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DCCI fears unfair competition

Blanket import liberalisation to hinder industrialisation

Star Economic Report
The Dhaka Chamber of Commerce and Industry (DCCI) stressed the need to safeguard adequately the gen-»uinc Interests of the domestic industries against uneven and unfair competition from the foreign goods.
“Any blanket liberalisation of imports at this stage of our economic growth will certainly retard our Industrialisation process,' the DCCI says, .aiding that a phasc-by phase approach' to import liberalisation is only logical for us.
"We are not opposed to 1m-port liberalisation in princi plc, provided others, partlcu-. iarly the developed countries, also dismantle their tariff and non tariff restrictions and thus open up their markets to exports from the developing countries." the DCCI adds.
The above observations were made in an editorial titled export and import policies In a changing global environment' published In tnc April, 1992 Issue of DCCI's
monthly Journal.
The DCCI in its editorial calls upon the relevant authorities to guarantee the facilities and Incentives to the exporters of the country, which, according to the editorial, are already enjoyed by their counterparts in the neighbouring countries. It regrets that the provisions about export incentives, announced under the last export policy (In areas of tax-exempted export earnings, rationalisation of export performance benefit and concessionary rate of interest for export credits) arc yet to be made operative In real sense'.
“Such operational lapses have seriously constrained our export promotional efforts," the DCCI says, pointing out some other problems relating to both traditional and non-tradltional items, export marketing, skill formation and development and specific prod-
uct-related factors.
It felt that a more conccn-
trated focus should be drawn in revamping the Import policy on more effective and realistic lines, taking Into consideration the factors like demand constraints, limited markets, lack of purchasing power of the common people and high production costs for local products.
"As far as our own foreign trade policies for exports and Imports are concerned, we do certainly need to have quick reflexes to adjust ourselves to the hard realities and changing trends and policy operations In other developing countries." the DCCI observes.
Referring to a latest human development report 1992, prepared by a group of experts under the auspices of the United Nations Development Programme (UNDP), the editorial says that the global trade restrictions and lack of opportunities for free flow of merchandise goods, together with unequal partnership, cost the
«developing countries, as a whole 9500 billion a year-10 times that they receive In foreign assistance'.
The DCCI termed It as 'the real irony' and says. "Bangladesh, despite the being a marginal operator In the global market In times of Its aggregate size and volume, has also faced this Irony."
According to the report, "twenty of 24 Industrial countries arc more protectionist than they were 10 years ago. Almost 28 per cent of all OCED Imports from developing countries arc affected by non-tariff barriers. It is true that developing countries use protectionist policies to protect infant and other industries. But the real irony is that — when the level of average protection in developing countries Is beginning to come down, partly as a result of structural adjustment programme — the protectionist trends In the industrial nations arc gaining ground."