Md. Joynal Abdin
The Financial Express on September 03, 2009
BANGLADESH economy could face problems in its international trade for neglecting what it can do in this arena.
Information and Communication Technology (ICT) has completely transformed business. Free market economy got a boost from online marketing.
Bangladesh needs to be prepared for possible post-global financial crisis measures that many countries could take to hamper our interest. Advance planning could minimise the impact of such measures.
Powerful trade blocks and bilateral free trade agreements (BFTAs) could threaten the isolated countries like Bangladesh, which is yet to have an active BFTA with our major trading partners. It may cause our further isolation in future as the patterns of intra- or block-trade indicates.
For example, intra-trade between West European countries accounts for 68 per cent of the region’s trade. North American countries’ growing intra regional trade accounts for 41 per cent.
Bangladesh ought to get into trade blockings or sign BFTAs with its major trading partners or potentially major trading partners for better market access.
Emerging economies like India, China and Brazil could swell the market shares of countries like Bangladesh. Mass production by giant groups using automated technology, could threaten our small and medium enterprise (SME) exporters.
The government has to be careful in allowing global retailers access to the domestic market.
In opening service sectors to foreign investment, Bangladesh could follow the positive list approach. Our telecommunication and tourism sectors have opened up.
But, unlike the telecommunication sector, tourism is yet to get investment from abroad.