In a latest development, China has allowed massive duty free access to Bangladeshi products into its market.
From 1 July, 97 percent Bangladeshi products will be granted the facility which the foreign ministry termed as ‘a success of economic diplomacy’.
Beijing has granted the facility to Bangladesh as a Least Developed Country (LDC) that includes 5,161 more products to enjoy zero tariff treatment in the Chinese market, the foreign ministry said.
Currently, 3095 Bangladeshi products enjoy duty-free access to Chinese market under Asia – Pacific Trade Agreement (APTA).
With the new announcement, 8256 products would join the zero tariff club, which is 97 percent of Bangladesh’s exports.
“As part of the government’s economic diplomacy and the outcome of exchange of letters between Bangladesh and China, Tariff Commission of the Chinese State Council issued a notice recently on granting zero treatment to 97 percent of tariff products of Bangladesh,” a foreign ministry press release said here today.
During the Asian-African Conference which took place this week in Indonesia, Chinese president Xi Jinping announced that China will grant duty free market access for LDCs 97 percent of the tariff lines within the year.
This beneficial market access scheme will be applied only for imports from LDCs that have diplomatic relations with China.
China is the largest trading partner of Bangladesh. The bilateral trade between Bangladesh and China, which amounted to $12.4 billion in 2017-2018, is expected to reach $18 billion mark by 2021,
The new zero tariff decision is hailed by the Bangladesh’s businessmen.
“This zero tariff access will certainly increase our exports to China,” said Tarun Kanti Das, Senior vice president of Bangladesh China Business Association and also Secretary General of Friends of Silk Road.
He told Bangladesh Post that clothes, jute and jute products, leather, fish, crabs, plastic waste, vegetables and fruits, spices and tobacco are the main export items of Bangladesh to China.
But leather sector will get the benefit, he said, adding that of the total exports of Bangladeshi leather, 60 percent goes to China.
“That’s why this duty free access will help increase the export volume of leather products,” he said.
He, however, suggested singing of the Free Trade Agreement with China which was proposed by Beijing in 2014.
“In the future, China will import more competitive products from Bangladesh. The signing of this free trade agreement between China and Bangladesh will help China buy more desirable products, services and give investment opportunities,” he said.
“To my knowledge, experts from Bangladesh and other countries are also in favour of an FTA between Bangladesh and China and some other countries.
“For Bangladesh, an FTA with China represents a golden opportunity, giving it access to the world's third largest economy after the European Union and the United States.
“This will help Bangladeshi businesses to level the playing field with their competitors like Pakistan, Maldives, Chile, Costa Rica and Peru,” he said.
“The biggest winners of the FTA are expected to be the Bangladeshi sectors associated with agro-food, leather and textiles, manpower and natural resources as Chinese demand for such products are growing.”
