Problems relating to Trade and Investment on Bangladesh

5. Regulations on parts industrial policy
Issue	Issue details	Requests	Reference

(1) Shortage of Incentive Measures for the Domestic Raw Materials Industries

- GOB's acceptance of preferential tariff on one of the processes of sewn products destined to EU/USA and Japan has displaced the need for local production of raw materials (thread and cloth). Thread and cloth production requires a heavy initial investment for machinery and equipment procured at a high local borrowing rate of nearly 20%, while the cost of raw materials equally spiral at rates higher than other countries due to increased energy cost from shortage of electric power and city gas in Bangladesh.
In long term these higher costs will set off relatively lower labour costs, while Bangladesh competitive edge gets debilitated.

- It is requested that GOJ will induce GOB to introduced incentive measures to the domestic raw materials industries by reduced taxes and increased incentives, etc. to assure a long-term growth of the Bangladesh industries.

<<BACK