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Enhancing Trade in the South and Southwest Business Environments for Agile Markets (Beam)

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Enhancing Trade in the South and Southwest Business Environments for Agile Markets (Beam) BANGLADESH TRADE ASSESSMENT: ENHANCING TRADE IN THE SOUTH AND SOUTHWEST BUSINESS ENVIRONMENTS FOR AGILE MARKETS (BEAM) January 2013 This publication was produced for review by the United States Agency for International Development. It was prepared by CARANA Corporation. BANGLADESH TRADE ASSESSMENT: ENHANCING TRADE IN THE SOUTH AND SOUTHWEST BUSINESS ENVIRONMENTS FOR AGILE MARKETS (BEAM) JANUARY 2013 DISCLAIMER The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. CONTENTS Abbreviations ..................................................................................................................................................................... iv Foreword ............................................................................................................................................................................. 1 Executive Summary ........................................................................................................................................................... 3 I. Introduction and Context ........................................................................................................................................ 15 South/Southwest Bangladesh ................................................................................................................................... 15 Recent Trade and Economic Developments ....................................................................................................... 17 Structure of This Assessment ................................................................................................................................. 23 II. Value Chains Analysis and Prioritization .............................................................................................................. 25 Sector Growth Opportunities and the South and Southwest Region .......................................................... 25 Methodology for Value Chain Analysis ................................................................................................................. 27 Sector Opportunities and Challenges ................................................................................................................... 30 III. Transport and Mobile Communications ............................................................................................................... 53 Transport ..................................................................................................................................................................... 53 Mobile Communications........................................................................................................................................... 65 IV. Trade Policy, Trade Facilitation and Standards ................................................................................................... 69 Trade Policy ................................................................................................................................................................. 69 Trade Facilitation ........................................................................................................................................................ 72 Border Governance Issues ...................................................................................................................................... 79 Standards ...................................................................................................................................................................... 80 V. Recommendations ..................................................................................................................................................... 83 Export VC Development Recommendations ...................................................................................................... 83 Cross-cutting Recommendations in Support of Export Expansion from the SSW ................................... 86 Bangladesh-India Cross-border Trade Development Initiatives ..................................................................... 88 Annex 1: VC Annex ........................................................................................................................................................ 91 Annex 2: Aquaculture .................................................................................................................................................. 111 Annex 3: Jute ................................................................................................................................................................. 123 Annex 4: Vegetables ..................................................................................................................................................... 135 Annex 5: Cut Flowers ................................................................................................................................................. 143 Annex 6: Coconut and Coir ...................................................................................................................................... 153 Annex 7: Existing and Planned Donor and Lender Support ............................................................................... 163 Annex 8: Meetings ........................................................................................................................................................ 171 Annex 9: Bibliography .................................................................................................................................................. 177 BUSINESS ENVIRONMENTS FOR BETTER MARKETS (BEAM) iii ABBREVIATIONS ADB Asian Development Bank AEO Authorized Economic Operator AFL-CIO American Federation of Labor and the Congress of Industrial Organizations ACT Agriculture Commodity Trade (project) APTA Asia Pacific Trade Agreement ASYCUDA Automated System for Customs Data (UNCTAD) BAB Bangladesh Accreditation Board BARI Bangladesh Agricultural Research Institute BB Bangladesh Bank BBS Bangladesh Bureau of Statistics BCCSAP Bangladesh Climate Change Strategy and Action Plan BDT Bangladeshi Taka BEST Better Fisheries Quality BFFEA Bangladesh Frozen Foods Exporters Association BG Broad Gauge BIID Bangladesh Institute of ICT Development BIMSTEC Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation BJMC Bangladesh Jute Mills Corporation BJRI Bangladesh Jute Research Institute BIWTA Bangladesh Inland Water Transport Authority BLPA Bangladesh Land Port Authority BQSP Bangladesh Quality Support Programme (EU) BR Bangladesh Railway BRAC Building Resources Across Communities (formerly Bangladesh Rural Advancement Committee) iv JANUARY 2013 BRDB Bangladesh Rural Development Board BSFF Bangladesh Shrimp and Fish Foundation BSIC Bangladesh Standard Industrial Classification BSTI Bangladesh Standards and Testing Institution CAA Civil Aviation Authority CDCS Country Development and Cooperation Strategy CFC Common Fund for Commodities CFS Country Freight Service CKW Community Knowledge Worker (Grameen Foundation) DCA Development Credit Authority (USAID) DFID Department for International Development (UK) DFQF Duty-free Quota-free DB Doing Business Report (World Bank) EBA Everything But Arms Initiative ECE Electronic Commodity Exchange EPB Export Promotion Bureau EU European Union FAO Food and Agriculture Organization FIQC Fish Inspection and Quality Control FIS Farmer Information System FTF Feed the Future (USAID) GAP Good Agricultural Practices GATT General Agreement on Trade in Services GDP Gross Domestic Product GEP Guaranteed Express Service GNI Gross National Income BUSINESS ENVIRONMENTS FOR BETTER MARKETS (BEAM) v GNP Gross National Product GOB Government of Bangladesh GSP Generalized System of Preferences (GATT/WTO) HACCP Hazard Analysis and Critical Control Points HIES Household Income and Expenditure Survey HS Harmonized Commodity Description and Coding System Hortex Horticultural Export Development Foundation HYV High Yielding Variety ICD Inland Container Depot ILAB Bureau of International Labor Affairs IMTP Integrated Multi-modal Transport Policy IPM Integrated Pest Management IPCC Intergovernmental Panel on Climate Change ITC International Trade Center IWTA Inland Water Transport Authority JDP Jute Diversified Product LDC Least Developed Country MFN Most Favored Nation MOU Memorandum of Understanding MPA Mongla Port Authority MT Metric Ton (1,000 kilograms) NABCB National Accreditation Board for Certification Bodies (India) NAMA Non-Agricultural Market Access NEC National Economic Council nd No date NGO Non-governmental organization vi JANUARY 2013 NLTP National Land Transport Policy NORAD Norwegian Agency for Development Cooperation NTB Non-Tariff Barrier PL Post Larvae PPP Public-private partnership PRICE Poverty Reduction by Increasing Competitiveness (USAID project) PRSP Poverty Reduction Strategy Paper PSI Pre-Shipment Inspection PTA Preferential Trade Arrangement RASFF Rapid Alert System for Food and Feed (EU) RCA Revealed Comparative Advantage RHD Roads and Highways Department RMD Road Master Plan RMG Ready-made Garments SAARC South Asian Association for Regional Cooperation SAFTA South Asia Free Trade Agreement SASEC South Asia Sub-regional Economic Cooperation SEZ Special Economic Zone SME Small and medium-sized enterprise SPS Sanitary and Phytosanitary
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