Diplomats and local business leaders yesterday said some of the post-MFA challenges facing Bangladesh will be improving governance and increasing the efficiency of Chittagong Port.

The investors simply cannot overlook the issues like human rights, governance and law and order situation while planning to invest in a country, they told at a seminar.

Phasing out of multi-fibre arrangement in 2004 may bring a lot of social problems for a lot of families, they said. And many people especially women will lose jobs, they added.

The seminar on 'Trade issues between Bangladesh and European Union- post 2004 perspective' was jointly organised by Dutch-Bangla Chamber of Commerce and Industry and the National Press Club in Dhaka.

Speaking at the technical session, Esko Kentrschynskyhj, ambassador of Head of Delegation of EC to Dhaka, said phasing out of MFA after 2004 poses a major threat to Bangladesh as some key issues like congestion in Chittagong Port, continuing dependency on fabric imports and inadequate investment in the backward linkages have not been addressed properly.

Closure of readymade garment units and massive unemployment may aggravate the situation. Besides, the attitude of garment exporters' association and the textile association regarding some trade issues was not helpful for solving the problems, he observed.

Sjef Ijzermans, Dutch ambassador in Dhaka, said, the clock is ticking and the country needs to undertake some drastic measures before it is too late.

ASM Quasem, vice president of International Chamber of

Commerce-Bangladesh, stressed the need for taking immediate steps to face the challenges in the post-MFA era. "Steps should be taken to solve port congestion problem and reduce interest rate on bank loans to make business competitive."

Zinnat Ali Mia, vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said if the EU rules of origin is not relaxed, 30 per cent woven garment factories will be closed down by 2004 and it will have a negative impact on the garment industries.

Referring to a ongoing tussle between commerce and fisheries ministries on the seal of quality issue in the frozen food sector, Zillul Hye Razi, Economic and Political Affairs officer of EU in Dhaka, said cohesion in policies are required to sell products in the global market.