Liberalization of Trade

The legacy of controlled import trade in Bangladesh dates back to pre'47 era of the British rule. Following partition of the Indian sub-continent in 1947, the then Pakistan Government also adopted policy of controlled import trade in view of fragile economy and serious shortage of foreign exchange In continuation of this legacy; Bangladesh after its independence in 1971 held on to a controlled trade regime against the backdrop of a war ravaged economy with serious foreign exchange crisis and set up the office of the Chief Controller of Imports and Exports in 1972 to carry out/implement the import policy of the government. The idea of trade liberalization came into worldwide focus under the aegis of General Agreement on Tariffs and Trade (GATT) and Bangladesh as a partner in global trading could not remain an exception to the worldwide emerging trend towards liberalization of trade and hence embarked on an agenda of decontrolling its trade gradually. In so doing Bangladesh at times appeared to have pushed herself too far throwing some of our manufacturing sectors into jeopardy due to uneven competition from the imported products. We have had to suffer a lot on that score, specially in the initial stages. But owing to the impulse for trade liberalization that came from a large majority of business community and the compulsions brought on by the fast developing scenario in the global trade arena; Bangladesh staged a switch over/shift from import-substitution policy to an export-led growth policy.
2.0 All along Bangladesh subscribed to the principles and the objective of GATT negotiations on tariffs and trade, and look up the strategy of moving/shifting away from the controlled trade regime ever since late seventies. With that end in view attention was given to reduction/rationalization of tariffs, simplification of import and export trade procedures, relaxation of restrictive trade policies/practices and reforms of financial and monetary policies.
Particularly in response to the rapid trends of globalization and free market economy- Bangladesh decided to reform its trade regime so as to advance the cause of free trade and to achieve thereby the greater national goal of sustained economic growth< As a signatory to the trade agreements under Marrakash declaration following conclusion of the Uruguay Round of trade negotiations under erstwhile GATT and new as a founding member of the World Trade Organization (WTO), Bangladesh is committed to pursue an open market economy and free trade policies- She is persistently trying to make her trade policies compatible with the WTO principles and responsive to the obligationsunder WTO trade agreements. But it remains a fact that Bangladesh has pursued a gradual course of liberalizing trade in phases rather than at one go. Trade policies have been reformed taking utmost care so as to withstand the possible after shocks in our economy. Trade liberalization has, however, been effected successively through Import Policy Order over the last two and a half decades. Today Bangladesh can, indeed, boast of having a trade policy regime that leaves little room for further liberalization except to the detriment of public health, security, environment and religious feelings.
Government of the People's Republic of Bangladesh has been pursuing a policy of progressive liberalization and simplification of the national trade policy within the framework of WTO rules and regulations- With this end in view strategy has been adopted to gradually withdraw items from the controlled list and also simplify the procedure for import Thus while in the Import Policy Order J 997-2002, the number of H.S. headings 131 were in the banned/restricted list. Import Policy Order, 2003-2006 includes only 60 H.S. Headings in the controlled list. Such a policy is aimed at allowing a greater national goal of sustained economic growth through simplifying the procedures for import of capital machinery and industrial raw materials with a view to promote exports and ensure competitiveness, efficiency and quality of indigenous industry.