Al Amin :
Bangladesh receipt from exports in goods to China dropped heavily in the last fiscal year (FY20) compared to the decline in exports to India during the same period.
Businesses said that the supply chain disruption caused by the ongoing Covid-19 was the main reason behind the export reduction but Bangladesh has huge opportunity to increase export earnings from China with the newly announced tariff-free access.
According to the Export Promotion Bureau (EPB) data, the exports earning from China came down to $600.10 million in FY20 from $833.20 million in FY19, posting a decline of 28 per cent within a year.
At the same time, exports to India dropped by around 12.15 per cent to $1096.38 million in the last fiscal year from $1248.05 million in the previous fiscal year.
Bangladesh is currently enjoying tariff-free access for all but 25 products in Indian market.
On the other hand, Bangladesh had been enjoying duty-free market access for some 61.0 per cent of products in China. The country, however, extended the benefits for 97.0 per cent of products from July 1, 2020. From that day, 8,256 Bangladeshi products are getting zero tariff facility in the Chinese market.
Bangladeshi manufacturers will be able to avail this duty-free and quota-free facility after 40 percent value addition to these products.
Stakeholders believe that this opportunity is expected to give a boost to Bangladesh’s exports to the Chinese market and attract foreign investment into Bangladesh.
There is also a strong prospect of expanding markets of Bangladeshi pharmaceutical products, readymade garments, frozen food, fish and vegetables in China.
Mamun Rashid, joint-secretary to Bangladesh China Chamber of Commerce and Industry, said there is a huge demand for Bangladeshi traditional products as well as pharmaceutical items in China that has a population of around 140 crore.
“Bangladesh could not use that potential for not having duty-free access to the Chinese market,” he said, adding, “It has opened up a new opportunity for Bangladesh.”
Businesses claim that even though labour in Bangladesh is cheaper than in China and that Bangladeshi products have huge demand in Chinese market, Bangladesh was not being able to increase exports to China due to tariffs.
Shams Mahmud, President of DCCI, told The New Nation, “Bangladesh should popularise joint venture investment in the country immediately to be beneficiary of the duty-free access facility.”
“Bangladesh has a huge opportunity to increase export earnings from china, if the country takes time befitted strategy to boost manufacturing sector,” he added.
Bangladesh Tanners’ Association President Shahin Ahmed said Bangladesh could previously export over 3,000 products to China without facing tariff barriers by adding 35 percent value to those.
However, since the more prominent export items were out of the list of products under the facility, Bangladesh could not get the facility on most of the potential export items.
At present China buys 50 percent of Bangladesh’s tannery products, he said, adding that the sector is the most beneficiary from the newly announced facility.
Bangladesh receipt from exports in goods to China dropped heavily in the last fiscal year (FY20) compared to the decline in exports to India during the same period.
Businesses said that the supply chain disruption caused by the ongoing Covid-19 was the main reason behind the export reduction but Bangladesh has huge opportunity to increase export earnings from China with the newly announced tariff-free access.
According to the Export Promotion Bureau (EPB) data, the exports earning from China came down to $600.10 million in FY20 from $833.20 million in FY19, posting a decline of 28 per cent within a year.
At the same time, exports to India dropped by around 12.15 per cent to $1096.38 million in the last fiscal year from $1248.05 million in the previous fiscal year.
Bangladesh is currently enjoying tariff-free access for all but 25 products in Indian market.
On the other hand, Bangladesh had been enjoying duty-free market access for some 61.0 per cent of products in China. The country, however, extended the benefits for 97.0 per cent of products from July 1, 2020. From that day, 8,256 Bangladeshi products are getting zero tariff facility in the Chinese market.
Bangladeshi manufacturers will be able to avail this duty-free and quota-free facility after 40 percent value addition to these products.
Stakeholders believe that this opportunity is expected to give a boost to Bangladesh’s exports to the Chinese market and attract foreign investment into Bangladesh.
There is also a strong prospect of expanding markets of Bangladeshi pharmaceutical products, readymade garments, frozen food, fish and vegetables in China.
Mamun Rashid, joint-secretary to Bangladesh China Chamber of Commerce and Industry, said there is a huge demand for Bangladeshi traditional products as well as pharmaceutical items in China that has a population of around 140 crore.
“Bangladesh could not use that potential for not having duty-free access to the Chinese market,” he said, adding, “It has opened up a new opportunity for Bangladesh.”
Businesses claim that even though labour in Bangladesh is cheaper than in China and that Bangladeshi products have huge demand in Chinese market, Bangladesh was not being able to increase exports to China due to tariffs.
Shams Mahmud, President of DCCI, told The New Nation, “Bangladesh should popularise joint venture investment in the country immediately to be beneficiary of the duty-free access facility.”
“Bangladesh has a huge opportunity to increase export earnings from china, if the country takes time befitted strategy to boost manufacturing sector,” he added.
Bangladesh Tanners’ Association President Shahin Ahmed said Bangladesh could previously export over 3,000 products to China without facing tariff barriers by adding 35 percent value to those.
However, since the more prominent export items were out of the list of products under the facility, Bangladesh could not get the facility on most of the potential export items.
At present China buys 50 percent of Bangladesh’s tannery products, he said, adding that the sector is the most beneficiary from the newly announced facility.
