A total of 91% exporters in the country reportedly experience difficulty with Non-tariff Measures (NTMs) applied by the destination markets or by Bangladesh.
The fact came into light while sharing a survey findings aimed to shed light on regulatory and procedural obstacles to trade faced by Bangladeshi firms.
The survey, which interviewed 998 companies, found that 832 of the companies are afraid of NTMs.
The survey was implemented by SRGB Bangladesh Limited (SRGB) on behalf of International Trade Center.
The findings of the survey, which was implemented between April 2014 and February 2015, was presented yesterday at a National Stakeholder Meeting on Non-tariff measures (NTMs) held at the Dhaka Chambers of Commerce and Industry auditorium in the city.
The meeting was organised by the International Trade Center (ITC) and supported by Business Initiative Leading Development (BUILD. Representatives of various public agencies, business associations, experts and other stakeholders attended the meeting.
To conduct the survey, the implementing agency contacted around 1,600 companies except service and some manufacturing ones. Respondents were mostly people from managerial positions of companies based in Dhaka, Chittagong and Khulna.
The survey was done in two stages. The first step involved screening of exporting and importing companies through a telephone interview which shortlisted 998 companies. In the second stage, additional face-to-face interviews were conducted with 411 companies that reported to have experienced burdensome NTMs.
These companies include fresh food, process food, wood products, textile, chemical, leather, electronic components etc.
Respondents were interviewed on four issues – business operation, main product and their partner countries, barriers to trade and business environment.
In response, 91% of them said they are afraid of NTMs. Among them, 88% are from clothing, 84% from wood, and 96% are from fresh food.
Some 77% of the respondents said such NTMs-related problems are with partner countries while the rest with Bangladesh.
The survey also tried to shed light on why Bangladeshi exporters find NTMs as burdensome.
Of the exporters facing NTMs, 86% of them blamed procedural obstacle by Bangladeshi agencies, 52% viewed time constraint or delay in administration and 32% high charge of border payment.
While disclosing the findings, Mondher Mimouni, chief, market analysis and research, ITC, said the nature of NTM has changed over time.
“They have become less visible and direct, but more complex. Most of the problems companies face in relation to NTM are linked to the country’s capability, its infrastructure and efficient procedures,” he said.
“Policy makers lack clear understanding about current obstacles to trade their private sector is facing. These make things difficult for businesses,” he said.
During the meeting, speakers said Non-tariff Measures have become a major impediment to international trade and market access and are of particular concern to exporters in developing and least developed countries.
BUILD Chairman Asif Ibrahim said some times NTMs are more important than tariff measures as it remain unseen.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Abdul Matlub Ahmad said time has come to focus on implementation of decisions taken in connection with non-tariff measures rather than waiting for more decisions.
Source: Dhaka Tribune
