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Develop infrastructure or face tough post-MFA era
 US envoy warns Bangladesh at dialogue

The Daily Star
March 19, 2004
 Star Business Report

  

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US Ambassador in Dhaka Harry K Thomas yesterday cautioned Bangladesh about a hard time in the post-MFA (multi fibre arrangement) era unless it develops infrastructure and eliminates corruption. "The post-MFA period would be very sad for Bangladesh if it does not improve infrastructure, eliminate corruption and set up more modern ports and airports," he said addressing a dialogue on Bangladesh's survival in a quota-free regime. The Centre for Policy Dialogue (CPD), Citibank NA Bangladesh and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) jointly organised the dialogue at Dhaka Sheraton Hotel. Commerce Minister Amir Khosru Mahmud Chowdhury, BGMEA President Annisul Huq and CEO of Citibank NA Mamun Rashid, along with leading apparel exporters, bankers, economists, workers' leaders and other professionals participated in the dialogue. CPD Research Director Mustafizur Rahman presented the keynote paper. The US envoy however expressed hope for Bangladesh's success in a quota free regime by taking some policy measures. "Bangladesh has the capacity to achieve success but you have to further improve your infrastructure and power," he suggested. The discussants demanded massive cut in interest rates on bank loans for garment exporters, setting up of central bonded warehouse and other policy measures for increasing the competitive edge of local products. The BGMEA president demanded government steps for protection of readymade garment industry after complete phase out of MFA. Only a strong policy of the government can protect several hundred garment factories from closure, he said. Huq said the garment sector entrepreneurs need fund at lower interest rate to face the post-MFA challenges. The BGMEA chief said the buyers have confidence in Bangladesh and they are coming with more orders. The commerce minister assured all sorts of policy support from the government to the apparel sector for its survival in a quota free regime. He said the government already took initiatives to get quota free access from developed nations. A number of countries like Canada, Australia, New Zealand and Japan have provided Bangladesh goods with duty free access, he said, adding, "Now we are trying to get similar facilities from developing nations like India and Pakistan." Responding to the demand of setting up a central bonded warehouse, Khosru said it could be set up after getting approval from the finance ministry. CPD Research Director Mustafizur Rahman in his paper explained both the advantages and disadvantage of the country in a quota free regime. China will be the main competitor of Bangladesh products in the free market, he forecast. Explaining various advantages like cheap labour force and big export volume he hoped that the country would succeed and even would be able to expand its market after phasing out of quota regime. Among others, CPD Executive Director Debapriya Bhattacharya, Prof Abu Ahmed of Dhaka University, GM Kader MP Anwarul Alam Chowdhury, Anisul Islam Mahmud, Shirin Akhter took part in discussion.