Bangladesh was granted during the last two years duty free access for some of its goods in the markets of some developed and semi-developed countries. In other cases, significant reductions in tariff were declared . Some more concessions are likely to come the way of Bangladesh very notably from the pivotal US market and in relation to its main export item, ready-made garments.
Undoubtedly, these preferential treatments for Bangladeshi products have already met or are going to meet considerably the needs of competitiveness of a host of export products from this country or enhance the potential of exporting products that have not yet been exported. However, to retain the competitiveness or further improve on such competitiveness to create and sustain market shares of export products of Bangladesh origin to those countries, there is a pressing need for the government of Bangladesh to take a series of measures itself to consolidate the competitiveness acquired or to increase capacities to be able to export more on a sustainable basis.
The government with the help of donors has completed a capacity development programme for exporters which has had some positive impact . Another such export development programme, as was reported earlier in this paper sometime ago, has fallen into some uncertainty over who should be its beneficiaries. Government wants the programme to benefit its Export Promotion Bureau (EPB) while the donor organisation want it to directly help private sector export activities. The point of discord needs to be settled immediately so that a gap does not occur by default in running such programmes. Capacity building for exports, be it in areas of the government or among targeted ones in the private sector, must go ahead apace to pave the ground for greater exports.
Meanwhile, there is so much that the government can do and must do directly to energise export activities. It can take special measures to provide uninterrupted supply of power to export oriented industries. Some export items are getting export subsidies ; similar subsidies in varying degrees can be extended to a range of export products to boost overall export volumes although very scrupulous administration must be ensured in the dispensation of the extended subsidies. Government can also reduce , as far as possible, the electricity bills of export-oriented enterprises. The nationalised banks can reduce their interest rates on loans going to exporters. Necessary infrastructures can be built in the public sector which would be counted as useful and supportive by the exporters.
The modernisation and expansion of the Chittagong port can be particularly helpful. This port is central to export activities but remains handicapped now from various inefficiencies that make its handling time still lagging somewhat behind regional standards when very fast handling of export cargoes at least possible costs are the keys to success in the export trade.
Thus, government can provide a major input to increasing exports by further upgrading the Chittagong port . Then, there other activities, too, that should indirectly aid increased export activities such as further improvement of the law and order situation, more attractive fiscal and monetary policies in respect of export oriented enterprises and also improving the legal environment for exporters or those seeking to establish export-oriented industries in Bangladesh on joint-venture basis with foreign partners.
