Foreign commercial banks seem cautious to make comments on Bangladesh Bank's (BB) decision to make farm loans mandatory for all banks operating in the country. They said they are waiting to receive details of the BB decision and directives before talking on their next course of actions on the issue. They said at present they do not provide any farm credit.
The central bank on Tuesday decided to make disbursement of agricultural credit to the farmers mandatory for all banks to facilitate farming activities to ensure food security. The BB took the decision at a meeting of Agriculture Credit Monitoring Committee. To comply with the BB decision, banks will have to introduce a 'revolving crop credit limit', distribute loans to farmers through identity cards and issue collateral-free loans to fishermen and sharecroppers. “We are aware of the news, but have not received the circular from Bangladesh Bank as yet,” said Mahbub-ur-Rahman, head of corporate banking of HSBC. “We are committed to comply with the regulatory guidelines which are issued by the central bank from time to time," said Rahman. Standard Chartered Bank (SCB), another major foreign bank operating in the country for long, also echoed HSBC. “We have been informed about the news through media. We are now waiting for detailed direction from Bangladesh Bank in this regard,” said Sarwat Ahmad, senior manager of SCB's corporate affairs. A Citi NA official said the bank authority would not make any comment before receiving the BB guidelines on mandatory credit to the farmers. Private Banks however hailed the BB move, saying the decision would help the country achieve food security through increased agricultural production. Shahjahan Bhuiyan, managing director of United Commercial Bank, termed the central bank's move to make farm loan mandatory for all banks as 'an excellent decision'. “Increasing farm credit will help boost food production in the country,” Bhuiyan said. Bangladesh has set a target to disburse Tk 9,379 crore as agricultural loan this fiscal year, a 13 percent increase from the last fiscal year. The agricultural loan disbursed last fiscal year was Tk 8,308 crore, Tk 6,974 crore of which being disbursed by nine government-owned banks, according to BB statistics. The government has been persistent in pursuing banks to provide farm credit for the sake of the economy and the farmers, which has not been met with much response by the banks. However, in recent times private banks have come up with an increased amount of farm credit, seeing the market and the profit margin in this. Some 30 private banks disbursed Tk 2,048 crore of farm credit in fiscal 2007-08, which was almost half in the previous fiscal year. The private commercial banks have set a target for disbursing 55 percent more than in the previous fiscal year in agricultural loan, Nazrul Huda added. No foreign banks operating in the country disbursed any loan for agriculture. “Currently, we do not provide any credit for agriculture. But we lend for agro-based industries,” Sami A Hafiz, a spokesman of HSBC, said.
Thursday, September 18, 2008
Friday, September 12, 2008
Asian stocks down
Asian stocks tumbled Thursday after ailing US investment bank Lehman Brothers hit investor sentiment by posting more hefty losses due to the global financial crisis and credit crunch.
The bourses in Hong Kong, mainland China, Taiwan and Singapore all slumped more than three percent. Japan, Asia's biggest bourse, and Australia each shed almost two percent.
Taiwan fell even though the government announced an economic stimulus package of 5.6 billion US dollars. South Korea slid around 1.5 percent as its central bank kept interest rates steady. Lehman announced plans Wednesday to sell off key assets to shore up its finances as it posted big losses linked to the US subprime real estate crisis. The beleaguered Wall Street firm, seen as in desperate need for a capital injection, lost an estimated 3.9 billion dollars in its fiscal third quarter amid fresh writedowns on mortgage assets. The bank's results put the focus back on the meltdown in the subprime, or higher risk, mortgage sector, which sparked a global credit squeeze that has hit world economic growth.
Among smaller Asian markets Thursday, India and Malaysia tumbled around two percent, while Thailand and the Philippines fell 1.3 percent.
The bourses in Hong Kong, mainland China, Taiwan and Singapore all slumped more than three percent. Japan, Asia's biggest bourse, and Australia each shed almost two percent.
Taiwan fell even though the government announced an economic stimulus package of 5.6 billion US dollars. South Korea slid around 1.5 percent as its central bank kept interest rates steady. Lehman announced plans Wednesday to sell off key assets to shore up its finances as it posted big losses linked to the US subprime real estate crisis. The beleaguered Wall Street firm, seen as in desperate need for a capital injection, lost an estimated 3.9 billion dollars in its fiscal third quarter amid fresh writedowns on mortgage assets. The bank's results put the focus back on the meltdown in the subprime, or higher risk, mortgage sector, which sparked a global credit squeeze that has hit world economic growth.
Among smaller Asian markets Thursday, India and Malaysia tumbled around two percent, while Thailand and the Philippines fell 1.3 percent.
Policy dilemma holds back e-commerce takeoff
The government's lingering hesitancy in the execution of the policy on information and communication technology even six years into its formulation remains the main hurdle to e-commerce, say people in the ICT sector. E-commerce is an internet-based platform used for electronic transactions. The device facilitates anyone's purchase of products or handling of day-to-day transactions for any purpose, sitting in an internet-friendly environment. Since the formulation of the National Information and Communication Technology Policy in 2002, the introduction of e-commerce has been delayed for lack of infrastructure. When neighboring India's e-commerce market crossed over Rs 9,000 crore last fiscal year, Bangladesh is yet to set up the required platform -- certifying authority and electronic payment gateway -- to march forward, the sector people say. Meanwhile, the central bank's policy of not allowing credit cards for online purchase also goes against the concept of e-commerce. However, some sector-based websites on transportation and auction have already developed in Bangladesh. But the limitation in this case is customers' physical presence is required to benefit from the sites.Amir Chowdhury, policy adviser to the Access to Information Programme at the Chief Adviser's Office (CAO), also hinted at a further delay in setting up an electronic payment gateway. "A number of recent meetings between the central bank and different stakeholders, held at the CAO, recommended the establishment of this platform in a span of six months,” he said.
From 2002 to 2006, the year the government passed the Information and Communication technology Act, a considerable number of committees were formed and sessions of talks held to introduce e-commerce, but all efforts were confined to transferring the issue from one government agency to another, industry insiders say. As per the Clause 18 in the ICT law of 2006, it was the government's obligation to form a certifying authority within 90 days after the passage of the law. The main responsibility of this body is to regulate the e-commerce merchants who develop online sites. "The certifying authority has not yet been established, which is required to authenticate digital signatures of online customers and the merchants as well," said Habibullah N Karim, president of Bangladesh Association of Software and Information Services (BASIS). The taskforce committee on internet-banking made recommendations last week to decide on the digital signature for online shopping and other transaction. “We are working on it. A team comprising government and UNDP officials visited Singapore recently to see how it is functioning there,” said Lusa Mirza, consultant, Access to Information Programme of UNDP, which is supporting the government on the issue. Now a team of domestic and foreign consultants is working on to formulate rules and regulations for digital signature, she said, adding that the 1972 Evidence Act might need to be amended. Who should handle electronic payment gateway? The debate on ownership of the gateway also surfaced in the last few months. IT entrepreneurs, and banks both are interested to own the gateway. BRAC Bank has already proposed to the Bangladesh Bank to set up the gateway, but rejection from other banks held back the move, said Access to Information Programme officials.
"The gateway could be established on private ownership or on public private partnership basis," said Shoeb Ahmed Masud, a member of the BASIS executive committee who represented in some committees made for e-commerce execution. Central Depository Bangladesh Limited (CDBL), the operator of central depository system of the capital market, could be an example of setting up such kind of gateway, he said. Experts see a wider business activity on the introduction of e-commerce in the country. "If government introduces e-commerce, its revenue earnings will jump significantly. Any government's levy including income tax, bills and corporate tax could be paid without any hassle," said Masud. The purchase of various things ranging from transportation tickets to anything from mega shops without physical presence is possible by e-commerce, the BASIS official added.
But low internet penetration (below one percent) is another setback to boosting e-commerce. At present, only one million people use the internet in the 150 million populated country. "Internet access costs are still high, which hinder widespread use of online services," said the BASIS president. However, the internet usage is expected to increase, as the telecom regulator has recently taken measures to introduce a range of wireless internet services. Referring to India's tourism market, a web portal developer said: "When India earns more than its expectation from the e-commerce based tourism industry, our government high-ups end up with series of parleys." The size of online travel industry stands at Rs5500 crore at the end of fiscal 2006-07, according to a study by Internet and Mobile Association of India. Kamal S Qaudir, chief executive officer of Cellbazar, the country's largest mobile based e-commerce owner, said: "E-commerce, or to be more precise m-commerce, has more potential in developing countries such as Bangladesh because it brings a new paradigm where none existed before." "Bangladesh cannot afford to delay e-commerce or m-commerce any further (in fact we are quite late as neighbouring countries are far ahead)," he said.
From 2002 to 2006, the year the government passed the Information and Communication technology Act, a considerable number of committees were formed and sessions of talks held to introduce e-commerce, but all efforts were confined to transferring the issue from one government agency to another, industry insiders say. As per the Clause 18 in the ICT law of 2006, it was the government's obligation to form a certifying authority within 90 days after the passage of the law. The main responsibility of this body is to regulate the e-commerce merchants who develop online sites. "The certifying authority has not yet been established, which is required to authenticate digital signatures of online customers and the merchants as well," said Habibullah N Karim, president of Bangladesh Association of Software and Information Services (BASIS). The taskforce committee on internet-banking made recommendations last week to decide on the digital signature for online shopping and other transaction. “We are working on it. A team comprising government and UNDP officials visited Singapore recently to see how it is functioning there,” said Lusa Mirza, consultant, Access to Information Programme of UNDP, which is supporting the government on the issue. Now a team of domestic and foreign consultants is working on to formulate rules and regulations for digital signature, she said, adding that the 1972 Evidence Act might need to be amended. Who should handle electronic payment gateway? The debate on ownership of the gateway also surfaced in the last few months. IT entrepreneurs, and banks both are interested to own the gateway. BRAC Bank has already proposed to the Bangladesh Bank to set up the gateway, but rejection from other banks held back the move, said Access to Information Programme officials.
"The gateway could be established on private ownership or on public private partnership basis," said Shoeb Ahmed Masud, a member of the BASIS executive committee who represented in some committees made for e-commerce execution. Central Depository Bangladesh Limited (CDBL), the operator of central depository system of the capital market, could be an example of setting up such kind of gateway, he said. Experts see a wider business activity on the introduction of e-commerce in the country. "If government introduces e-commerce, its revenue earnings will jump significantly. Any government's levy including income tax, bills and corporate tax could be paid without any hassle," said Masud. The purchase of various things ranging from transportation tickets to anything from mega shops without physical presence is possible by e-commerce, the BASIS official added.
But low internet penetration (below one percent) is another setback to boosting e-commerce. At present, only one million people use the internet in the 150 million populated country. "Internet access costs are still high, which hinder widespread use of online services," said the BASIS president. However, the internet usage is expected to increase, as the telecom regulator has recently taken measures to introduce a range of wireless internet services. Referring to India's tourism market, a web portal developer said: "When India earns more than its expectation from the e-commerce based tourism industry, our government high-ups end up with series of parleys." The size of online travel industry stands at Rs5500 crore at the end of fiscal 2006-07, according to a study by Internet and Mobile Association of India. Kamal S Qaudir, chief executive officer of Cellbazar, the country's largest mobile based e-commerce owner, said: "E-commerce, or to be more precise m-commerce, has more potential in developing countries such as Bangladesh because it brings a new paradigm where none existed before." "Bangladesh cannot afford to delay e-commerce or m-commerce any further (in fact we are quite late as neighbouring countries are far ahead)," he said.
Marketing India
There are certain Indians who make you feel good about being a Bangladeshi, who give you a warm glow that despite all that razzmatazz and heavyweight tiffin boxes and big brains like Amartya, they too produce and consume their quota of trash. Shobhaa De is one of them. She is a writing phenomenon, whose books sell all over India, and in Pakistan too (where all the good and high society people fell over each other to fete her when she did a tour there not so many months back), and bring in a hefty chunk of change for her publishers Penguin India. Since I have never read any of her books, I only had a vague idea that she wrote romance novels. That's going by the perhaps less than solid evidence of having seen her on Zee TV a couple of times flaunting her cheekbones.
She was once a film journalist, and the style has stayed with her, as witness the writing in this collection of her articles titled Superstar India: From Incredible To Unstoppable? She picks a topic, any topic, Benazir Bhutto, her Brahmin childhood, old people, Dalits, cricket, NRIs, and dashes off her views. But she is most herself writing on her trips abroad, to Shanghai, London or Bangkok , which can at times be funny, but always is primed to showcase her as a tasteful, charming, older, discriminating crumpet. It is a lethally appetizing diet for the average middle-class English language reader, primarily women, running harried from day to endless day, since it provides, as opposed to the straight porn of romance novels, the more tangible, more 'real life' porn of the romance of the high life. Especially if mixed in with such musings as: “Hate creates votebanks. Tolerance doesn't. It's that simple.” Underpinning all this is a not-so-subtle India boosting (witness the title, the big clue!) where the formula is to give the bad news first: Yes, yes, India is smelly with its terrible roads and lepers-beggars, and then the good news: So you think the West is so terrific with its tasteless ham-and-cheese sandwiches and East European migrant waiters with undecipherable accents? Then comes the clincher: So where would you be, in India with its silks and colours and raths, or over there somewhere?
In present day Manmohan Singh's India, with its trendy ads, its singles in 'swinging' Bangalore, its fashion world and Hindi soaps, it is Shobhaa De, not India, that is unstoppable. She's figured out how to market Brand India (40,000 copies hit the bookstores on the first day, which is a huge run for an English language book even in the Indian book market). If you're so inclined you'll enjoy the book.
I couldn't go beyond the first 50 pages, then I skimmed it, but only because the editor of this page said I had to submit a review. No thanks to him
She was once a film journalist, and the style has stayed with her, as witness the writing in this collection of her articles titled Superstar India: From Incredible To Unstoppable? She picks a topic, any topic, Benazir Bhutto, her Brahmin childhood, old people, Dalits, cricket, NRIs, and dashes off her views. But she is most herself writing on her trips abroad, to Shanghai, London or Bangkok , which can at times be funny, but always is primed to showcase her as a tasteful, charming, older, discriminating crumpet. It is a lethally appetizing diet for the average middle-class English language reader, primarily women, running harried from day to endless day, since it provides, as opposed to the straight porn of romance novels, the more tangible, more 'real life' porn of the romance of the high life. Especially if mixed in with such musings as: “Hate creates votebanks. Tolerance doesn't. It's that simple.” Underpinning all this is a not-so-subtle India boosting (witness the title, the big clue!) where the formula is to give the bad news first: Yes, yes, India is smelly with its terrible roads and lepers-beggars, and then the good news: So you think the West is so terrific with its tasteless ham-and-cheese sandwiches and East European migrant waiters with undecipherable accents? Then comes the clincher: So where would you be, in India with its silks and colours and raths, or over there somewhere?
In present day Manmohan Singh's India, with its trendy ads, its singles in 'swinging' Bangalore, its fashion world and Hindi soaps, it is Shobhaa De, not India, that is unstoppable. She's figured out how to market Brand India (40,000 copies hit the bookstores on the first day, which is a huge run for an English language book even in the Indian book market). If you're so inclined you'll enjoy the book.
I couldn't go beyond the first 50 pages, then I skimmed it, but only because the editor of this page said I had to submit a review. No thanks to him
Saturday, September 6, 2008
RMG's duty-free access to US faces setback
Bangladeshi readymade garments (RMG) may face a setback in its effort to win duty- and quota-free access to the American market as US authorities have responded positively to the appeal of few African countries to exclude the country's RMG from New Partnership Act (NPDA) 2007. Ghana and Mali have recently requested Jim McDermott, chairman of the Ways and Means Sub-committee of the US House of Representative, for excluding five categories of Bangladeshi textile and apparel products from facilities under NPDA. McDermott, in his response, proposed exclusion of three categories of Bangladeshi textile and apparel products from opportunity provided under the NPDA. Bangladesh Ambassador in Washington Humayun Kabir revealed the details during his visit back to Dhaka last month. The diplomat held meetings with industry leaders and senior government officials, according to a high official of the commerce ministry. On several occasions, Bangladesh has tried to make it clear to the African countries that the country's duty free excess to the US market under NPDA will not hamper schemes such as African Growth and Opportunity Act. The chief adviser will meet a number of African Leaders at the UN General Assembly, scheduled to start on September 15 in Washington DC, in yet another effort to make them understand that Bangladesh is not their real threat. The government will convey to African leaders that Bangladesh is not a threat to African LDCs in terms of apparel exports to US market. African LDCs will face real challenges in the textile and apparel sector from China, once the US withdraws its safeguard measures in January 2009. The government will send a high-level business delegation to several African LDCs to convince them that the bill would be beneficial to all the LDCs. Meanwhile, a taskforce has been formed with technical help of Centre for Policy Dialogue to assist the government on the issue. McDermott introduced the NPDA 2007 bill in the US Senate in October 2007 with the aim to reduce extreme poverty worldwide. The legislation will help the people who live on less than $1 per day and primarily live in the LDCs. The NPDA was designed to eliminate all tariffs on the products originating from LDCs and help implement capacity-building programmes to reduce constraints to economic growth.
Nokia shares plunge after market share forecast cut
Nokia, the world's leading mobile phone maker, on Friday cut its third quarter market share guidance, sending its share price tumbling.
Nokia shares plummeted 9.9 percent to 14.15 euros (20.18 dollars) following the announcement.
"Nokia now expects its mobile device market share in the third quarter 2008 to be lower than in the second quarter 2008," the company said in a statement.
Previously, the mobile phone maker had forecast its market share to remain more or less on the same level, quarter-on-quarter.
Nokia said it had faced aggressive pricing by its competitors, while it had had problems ramping up production of its new mid-range cellular phones.
"We expect the product launches and start of shipments to be on track during the remainder of the third quarter and the fourth quarter 2008," it said.
Nokia shares plummeted 9.9 percent to 14.15 euros (20.18 dollars) following the announcement.
"Nokia now expects its mobile device market share in the third quarter 2008 to be lower than in the second quarter 2008," the company said in a statement.
Previously, the mobile phone maker had forecast its market share to remain more or less on the same level, quarter-on-quarter.
Nokia said it had faced aggressive pricing by its competitors, while it had had problems ramping up production of its new mid-range cellular phones.
"We expect the product launches and start of shipments to be on track during the remainder of the third quarter and the fourth quarter 2008," it said.
Reducing poverty through shaping strategies
Incidence of poverty is not new in human history, but its analysis, discourse or the efforts for reduction are. The emergence of urban poverty in Europe in the eighteenth century in the wake of industrialisation drew initial attention in a formal sense. Even till recently some people used to believe that the affluent West succeeded in striking out this evil even as it came to be revealed that at the fag end of the last century poverty still kept sticking out its ugly head, in no less a highly industrialised country than the United Kingdom. Countries like Bangladesh, India and Nepal from this part of the world are often the examples in the discourse on poverty. Naturally any research dealing with the philosophy or strategy of poverty alleviation can hardly overlook the perspectives of these countries. Two research monographs by Rehman Sobhan and MM Akash deserve careful reading for the simple reason that they critically look into some vital issues of pertinence. This is an outcome of a study commissioned by CPD and SACEPS. Together the two works have nine chapters. The first monograph mainly consists of remarks on conceptual issues relating to poverty reduction approaches pursued by a few major international organizations, namely, like WB, ADB, OECD, UNCTAD, and IFAD, who are not only important development partners or financing institutions but are also known to play a significant role in shaping the economic policies of several countries. The second monograph focuses on the Poverty Reduction Strategy Paper or PRSP of the selected South Asian countries mainly, as it will presumably provide guidance to the poverty reduction initiatives, particularly in framing the programmes of the countries concerned (Sri Lanka, Bangladesh, Nepal, and Pakistan). One can easily understand why these monographs should receive readers' attention, for they are related not only to their wide geographical coverage but also the very critiquing of poverty reduction strategies. While one would not expect indefinite reproductions of the observations and analyses the monographs have already made, selective reference will however be needed to set the tone of this brief review. More significant is that these monographs pursue an important analytical point regarding the main philosophy of poverty reduction. They avowedly assert that the first and foremost need is a structural change if the ultimate goal is poverty reduction. As a corollary they criticise 'micro' initiatives that do not take into account such imperatives. We quote to clarify this point, “…poverty originates in the structural features of society which can only be addressed at the macro level…' or '…micro programmes remain incapable of generating the synergy needed to eliminate poverty…' Certainly for any avid reader a curiosity to know more about the issue of structural imperatives in changing the face of poverty will be there. While the authors did not much labour to pen in a few paragraphs or pages on what underlies such structural imperatives, the discussion in different sections gradually offers up a perspective as to what they mean to transpire. Since the issue of structural change is the main argument for critiquing against these institutions it could help the reader more had there been a little more elaboration on the composition and strategies of structural change they are arguing for in a single section. One of the major aspects of the critique of these two monographs is the calling into question of some of the axioms and policies advocated in development parleys as they are inconsistent with the views of the aforementioned organisations. Let us give some examples from the authors. One of them says: 'Not withstanding this broader and stronger commitment to poverty reduction, the WDR 2000/01 remains essentially astructural in its conception of problem of poverty and thus fails to present any suggestion which could really enhance the capacity of the poor to emerge as a significant producers of goods and services in a market economy'. Now what is wrong with WB and ADB? The central critique lies in the point that they usually place market mechanism at the forefront to fight poverty, while for the poor it is impossible to act as a strong player in such a context as they hardly possess their own resources, reasonable education or competitive skill. On the other hand, accessing services in health and education competing with the affluent in society will also not be easy for the poor. However, all international organisations, as the first monograph shows, do not toe the WB or ADB line. The authors finally show how different approaches have emerged in course of time, some pushing forward neo-liberal ideas while others opt for structural change through redistributive justice.
Monday, September 1, 2008
EPB to go stronger
Plan underway to empower bureau to scrap exporter licence
The government has moved to empower the Export Promotion Bureau (EPB) to cancel licenses of exporters or suppliers or take legal action against rogue operators for their involvement in fraudulent activities, an official said yesterday.
The government took the initiative as a section of exporters with their alleged fraudulent activities in international trade hurt the image of the country abroad. Several Chinese businessmen had exported Chinese textile products to Germany by using Bangladesh GSP (generalized system of preferences) facilities with the help of some local exporters.
The result was, Bangladeshi exports to Germany were hit hard as the German Customs had imposed on German importers a 12 percent deposit on "suspicious shipments" from Bangladesh. But the German Customs had later lifted the restriction after Bangladesh adopted some measures to check forgery. Meanwhile, around two dozens of complaints -- mostly from the US and European countries -- have piled up against Bangladesh exporters and other suppliers, alleging that the suppliers breached agreements. A Belgian businessman has recently complained that his Bangladeshi counterpart had supplied low-quality jute, although he had paid for higher quality jute. In another instance, a French frozen foods importer accused his Bangladeshi counterpart of not sending stipulated quantity of shrimps. “We proposed to the government that an International Dispute Settlement Cell should be established to settle disputes in international trade, as the Regulatory Reforms Commission (RRC) sought suggestion from us to improve trade environment,” EPB Vice-chairman Md Shahab Ullah said. A high official at the commerce ministry said they had received the EPB proposal and sent it to the RRC. If the RRC clears the proposal and forwards it to the commerce ministry, the ministry will take a decision in this connection, he added. “The government should take prompt action against complaints to discipline Bangladesh's trade with other countries and to restore the positive image of Bangladesh abroad,” the official said.
A member of the Foreign Investors Chamber of Commerce and Industry said the chamber has been seeking such a cell for long and met with no response. Presently, the EPB has no power to take punitive action against the violators of international trade law. “The EPB is currently dealing with many complaints from foreign businessmen, who accuse local businessmen of breaching agreement and cheating,” the EPB vice chairman said. He said it is essential to empower EPB or any other organization so that they can take action against the violators.
The EPB vice chairman said the EPB could only investigate international trade disputes and blacklist the company involved in any particular dispute. "The implementation of the proposal will empower the Bureau to take punitive action as well," he said.
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The government has moved to empower the Export Promotion Bureau (EPB) to cancel licenses of exporters or suppliers or take legal action against rogue operators for their involvement in fraudulent activities, an official said yesterday.
The government took the initiative as a section of exporters with their alleged fraudulent activities in international trade hurt the image of the country abroad. Several Chinese businessmen had exported Chinese textile products to Germany by using Bangladesh GSP (generalized system of preferences) facilities with the help of some local exporters.
The result was, Bangladeshi exports to Germany were hit hard as the German Customs had imposed on German importers a 12 percent deposit on "suspicious shipments" from Bangladesh. But the German Customs had later lifted the restriction after Bangladesh adopted some measures to check forgery. Meanwhile, around two dozens of complaints -- mostly from the US and European countries -- have piled up against Bangladesh exporters and other suppliers, alleging that the suppliers breached agreements. A Belgian businessman has recently complained that his Bangladeshi counterpart had supplied low-quality jute, although he had paid for higher quality jute. In another instance, a French frozen foods importer accused his Bangladeshi counterpart of not sending stipulated quantity of shrimps. “We proposed to the government that an International Dispute Settlement Cell should be established to settle disputes in international trade, as the Regulatory Reforms Commission (RRC) sought suggestion from us to improve trade environment,” EPB Vice-chairman Md Shahab Ullah said. A high official at the commerce ministry said they had received the EPB proposal and sent it to the RRC. If the RRC clears the proposal and forwards it to the commerce ministry, the ministry will take a decision in this connection, he added. “The government should take prompt action against complaints to discipline Bangladesh's trade with other countries and to restore the positive image of Bangladesh abroad,” the official said.
A member of the Foreign Investors Chamber of Commerce and Industry said the chamber has been seeking such a cell for long and met with no response. Presently, the EPB has no power to take punitive action against the violators of international trade law. “The EPB is currently dealing with many complaints from foreign businessmen, who accuse local businessmen of breaching agreement and cheating,” the EPB vice chairman said. He said it is essential to empower EPB or any other organization so that they can take action against the violators.
The EPB vice chairman said the EPB could only investigate international trade disputes and blacklist the company involved in any particular dispute. "The implementation of the proposal will empower the Bureau to take punitive action as well," he said.
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