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Bangladesh seeks duty-free access to Indo-Pak markets
Bangladesh is trying to obtain duty-free access to markets in India and Pakistan in a bid to boost its exports and bridge the trade gaps with the two neighbours, a government official said, reports UNB
"What we are now aiming at is duty-free entry into Indian and Pakistani markets on non-reciprocal basis." Syed Alamgir Farrouk Chowdhury. Com merce Secretary, told a group of businessmen in the city yesterday
Speaking at a luncheon meeting of the Foreign Investors' Chamber of Commerce and Industry (FICCI), he cited the removal of market restrictions by the Bangladesh author ities as the basis for seeking the non-reciprocal facility
He informed that following the two rounds of successful trade negotiations under the South Asian Preferential Trad ing Arrange a-nt (SAPTA). the third round is going on and likely to be concludeci shortly.
Tariff concessions were suggested on 226 items In the first round and 815 in the second, he said and added Bangladesh was granted concessions by India on 513 items, which cover Considerable amount of tradable goods
The commerce secretary informed that as a step to boost export further. Bangladesh has proposed the SAPTA members to reduce the value addition re quirement for qualifying for the tariff conf ession to 25-30 per cent from the existing 40 per
In another step, he said, the government is thinking about reducing the value-addition requirement for the high fashion wear to 25 per cent, which will increase the exports of readymade garments.
When FICCI chief Mahbub Jamil pointed out that the disclosure clause of the Companies Act was seriously disturbing the foreign businesses. Chowdhury said they were ready to address the issues that impede business.
As per the 1994 Act. Jamil said, an entity is required to divulge certain vital company secrets detrimental to its business interests.
"Although in certain cases temporary exemptions from such disclosure were allowed by the Comfnerce Ministry, such a provision, if allowed to continue. would compel the industrial Investors to give a second thought about carrying on with their business and their investment plan."
The FICCI president strongly recommended that necessary amendment to the Act should brought without further loss of time.
"We will certainly look into anything which is likely to impede our business and investment." replied the commerce secretary. He. however, informed that whatever needs to be done would be in accordance with international practices.
Chowdhury told the FICCI members that the country's next export and import policies were at the final stage and would be declared next month. The policies are being framed for five years with provision for annual review, he said.
He listed the measures for enhancing exports and hoped that the export-earning target, fixed at 5 billion US dollars
this fiscal, up from last year's actual income of 4.4 billion, would be achieved.
But the secretary cautioned against the reliance on one sin-gle item — readymade garments, which earned nearly 70 per cent of the total export income — for export. It made the export sector more vulnerable to external shock, he said.
"Our objective is to liberalise export regime. We are reducing tariff to enable the exporters to get raw materials at the world prices." he said. He. however, pointed out that the government was being criticised for lowering the tariff much more than what was asked under the World Trade Organisation.
Chowdhury, who had spoken on issues like WTO in international fora, explained the WTO dispute-resolution system and asked the private sector to approach the government if they need any dispute settlement in the WTO.
FICCI executives and representatives of different multinational companies attended the meeting at a city hotel.