The LDC graduation round the corner that might dent Bangladesh’s export-competitiveness on the global market, Bangladesh Government is framing export strategy to deal effectively with post transition period.
Reports maintained this adding to cope with the challenges in the offing, the ministry concerned has recommended some prudent steps including lifting conditions regarding local value addition and gradual cut in HS headings on apparel items as businesses have, reportedly, expressed apprehensions phasing out existing cash incentives through LDC graduation could hit export competitiveness.
Reports further added the finance division mentioned in the suggestions that Bangladesh needs to gradually reduce export incentives/cash assistance for some RMG items under HS headings as the country had crossed the competitive threshold more than eight years ago under the headings even as the finance authority also, reportedly, recommended taking alternative measures as Bangladesh has an obligation to withdraw cash incentives/subsidy facilities after its graduation from least developed countries (LDCs) club in 2026.
