Staff Reporter :
The Cabinet on Monday gave consent to a draft of Preferential Trade Agreement (PTA) to be signed between Bangladesh and Bhutan to increase bilateral trade.
The approval was given at the regular weekly meeting of the Cabinet held with Prime Minister Sheikh Hasina in the chair.
The Prime Minister joined the virtual meeting through a videoconference from her official residence Gono Bhaban while other cabinet members joined from the Secretariat.
After the meeting, the Cabinet Secretary Khandker Anwarul Islam briefed the journalists at the Secretariat in the capital.
“Today’s (Monday) cabinet meeting approved a proposal of the Commerce Ministry for signing the PTA with Bhutan,” the Cabinet Secretary said.
He said, “18 Bhutanese goods have been enjoying duty-free access to Bangladeshi market since 2010, while 90 Bangladeshi products enjoy duty-free access to Bhutanese market. Later, Bhutan sought duty-free access for some more products to the Bangladeshi market.”
Economists said it is a positive initiative towards boosting export earnings as the two countries will be benefited from the PTA.
Dr Fahmida Khatun, Executive Director at the Centre for Policy Dialogue, told The New Nation that, “The proposed Preferential Trade Agreement (PTA) will create a win-win situation between Bangladesh and Bhutan in terms bilateral trade and both the countries will be benefited from it. So, the countries should implement the agreement as soon as possible.”
The PTA is also an opportunity for Bangladesh to export various major commodities like RMG, leather, consumable and agricultural goods to Bhutan, she said.
She further said Bangladesh should initiate to sign such agreements with more countries to boost the country’s export earnings.
As per a recent discussion through a video conference, the officials of both Bangladesh and Bhutan agreed to make the PTA functional from August 30 this year, the Commerce Ministry sources said.
Commerce Secretary Md Jafar Uddin said, “Signing of PTA with Bhutan will be remarkable. It will be the first PTA in 50 years.”
As per the PTA, Bhutan agreed to provide duty benefit on export of 100 different goods, including garments, processed agricultural goods, food items, plastics, pharmaceuticals, furniture and electronics.
On the other hand, Bangladesh agreed to provide duty benefit to 34 Bhutanese products including chemicals, pulps, bolder stones and fruits.
Being members of the South Asian Association for Regional Cooperation (Saarc), trade between Bangladesh and Bhutan is on the rise as both the countries have demands for products of each other.
Trade between Bangladesh and Bhutan that amounted to $26.52 million in fiscal 2012-13 reached $57.90 million in fiscal 2018-19, according to data from the commerce ministry.
The Cabinet also ratified the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific.
The Cabinet on Monday gave consent to a draft of Preferential Trade Agreement (PTA) to be signed between Bangladesh and Bhutan to increase bilateral trade.
The approval was given at the regular weekly meeting of the Cabinet held with Prime Minister Sheikh Hasina in the chair.
The Prime Minister joined the virtual meeting through a videoconference from her official residence Gono Bhaban while other cabinet members joined from the Secretariat.
After the meeting, the Cabinet Secretary Khandker Anwarul Islam briefed the journalists at the Secretariat in the capital.
“Today’s (Monday) cabinet meeting approved a proposal of the Commerce Ministry for signing the PTA with Bhutan,” the Cabinet Secretary said.
He said, “18 Bhutanese goods have been enjoying duty-free access to Bangladeshi market since 2010, while 90 Bangladeshi products enjoy duty-free access to Bhutanese market. Later, Bhutan sought duty-free access for some more products to the Bangladeshi market.”
Economists said it is a positive initiative towards boosting export earnings as the two countries will be benefited from the PTA.
Dr Fahmida Khatun, Executive Director at the Centre for Policy Dialogue, told The New Nation that, “The proposed Preferential Trade Agreement (PTA) will create a win-win situation between Bangladesh and Bhutan in terms bilateral trade and both the countries will be benefited from it. So, the countries should implement the agreement as soon as possible.”
The PTA is also an opportunity for Bangladesh to export various major commodities like RMG, leather, consumable and agricultural goods to Bhutan, she said.
She further said Bangladesh should initiate to sign such agreements with more countries to boost the country’s export earnings.
As per a recent discussion through a video conference, the officials of both Bangladesh and Bhutan agreed to make the PTA functional from August 30 this year, the Commerce Ministry sources said.
Commerce Secretary Md Jafar Uddin said, “Signing of PTA with Bhutan will be remarkable. It will be the first PTA in 50 years.”
As per the PTA, Bhutan agreed to provide duty benefit on export of 100 different goods, including garments, processed agricultural goods, food items, plastics, pharmaceuticals, furniture and electronics.
On the other hand, Bangladesh agreed to provide duty benefit to 34 Bhutanese products including chemicals, pulps, bolder stones and fruits.
Being members of the South Asian Association for Regional Cooperation (Saarc), trade between Bangladesh and Bhutan is on the rise as both the countries have demands for products of each other.
Trade between Bangladesh and Bhutan that amounted to $26.52 million in fiscal 2012-13 reached $57.90 million in fiscal 2018-19, according to data from the commerce ministry.
The Cabinet also ratified the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific.
