European Union ambassador Pierre Mayaudon said Bangladesh would have to meet four conditions to get GSP+ trade facilities after graduation to the middle income country status. The conditions include ensuring human and labour rights and maintaining environmental and good governance principles. Pierre Mayaudon was speaking at a seminar styled as “Bangladesh-EU Trade Ties: Prospects and Challenges” in Dhaka yesterday. The Economic Reporters Forum (ERF) organised the event at the National Press Club. The per capita income of Bangladesh is now $1,314, according the latest official data. To achieve middle-income country status as defined by the United Nations, Bangladesh must continue a per capita income above $1,398 for four consecutive years. Replying to a question the envoy said the EU will provide support including research and development, technology and academic assistance to explore the country’s emerging blue economy. He said the vision of Digital Bangladesh and proper exploration of blue economy will help Bangladesh achieve middle-income status. The GSP+ scheme provides a strong incentive to respect core human and labour rights, the environment and good governance principles. The scheme is part of the revised GSP scheme that entered into force on 1 January 2014. ERF president Sultan Mahmud moderated the programme, where secretary Sajjadur Rahman, among others was also present. “EU ambition in economic relation is to establish broader economic partnership between Bangladesh and the European countries,” Pierre Mayaudon said. The envoy added the EU had identified three main objectives including implementation of the sustainability compact, improving business climate and accompanying Bangladesh in climbing value chain. He urged the government to implement the labour rules not only in the RMG sector but also in other 42 sectors. As per the Vision 2021, Bangladesh will reach status of the middle income status. After reaching that status, the country will no longer benefit from the GSP facility, which is only for the least developed countries (LDCs). To prepare for the candidacy of GSP+ facility, Bangladesh will have to implement 27 international conventions on the subjects like human rights, labour rights, environment and good governance, Mayaudon said. As a LDC, Bangladesh is now enjoying duty-free and quota-free market access to the EU market under the GSP regime. The ambassador suggested reforms to the Companies Act integrating the service sector. He stressed the need to have transparent and credible regulatory framework to secure investment. Mayaudon said they would meet Commerce Minister Tofail Ahmed to tell him about what they can do for the reforms of the Companies Act. The envoy laid emphasis on peaceful environment to attract investment. “Some disturbing news make investors worried, which is keeping potential investments away from Bangladesh.” Mayaudon added: “70% of the court cases in Bangladesh are related to land disputes, which sends discouraging signal to foreign investors.” In a globalised economy, Bangladesh has to compete with many attractive destinations for foreign direct investments, he said. “Designing and conducting economic reforms is an absolute necessity, but it is vary difficult for the country to reform an economy.” Bangladesh has many assets to bravely carry out the process, the ambassador said.
