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TL;DR
- China grants 100% duty-free access to all products from Bangladesh and other LDCs, expanding from the previous 98% coverage in 2022.
- This decision aims to boost Bangladesh’s exports to China, which were valued at $676 million in FY 2022-23 compared to China’s $18.6 billion exports to Bangladesh.
- Bangladesh is working on diversifying its export basket beyond garments, with plans to export mangoes and other fruits to China in the near future.
- Economists suggest that capturing just 1% of China’s import market could potentially earn Bangladesh $25 billion in exports.
China has announced it will provide 100% duty-free access to products from Bangladesh and other least developed countries (LDCs). This significant trade development was conveyed by Chinese Ambassador to Bangladesh Yao Wen during a meeting with Bangladesh’s Foreign Secretary Jashim Uddin at the foreign ministry.
Foreign Secretary Jashim Uddin stated, “The Chinese ambassador said in the Sino-Africa summit in early September that China had decided to provide a 100 percent tariff line to LDCs, including Bangladesh.”
This move represents a further expansion of China’s duty-free access for Bangladeshi goods. In 2022, China had granted duty-free access to 98% of Bangladeshi products, up from 97% in 2020. The latest decision now covers all Bangladeshi exports.
China is Bangladesh’s largest trading partner, with Chinese exports to Bangladesh valued at over $18.6 billion in fiscal year 2022-23. In contrast, Bangladesh’s exports to China were worth about $676 million during the same period.
The foreign secretary expressed optimism about increased exports to China, noting that procedures for exporting mangoes from Bangladesh are nearly complete. “We can export mangoes to China from next year,” he said, adding that Bangladesh is working on exporting other fruits like jackfruits and guavas as well.
Despite the favorable trade conditions, economists suggest that Bangladesh needs to diversify its export basket beyond its heavy reliance on the garment industry to fully capitalize on the Chinese market. MA Razzaque, chairman of the Research and Policy Integration for Development, estimates that Bangladesh could potentially earn $25 billion in exports if it could capture just 1% of China’s import market.
The meeting also covered discussions on regional and multilateral issues, mutual support in international forums, and China’s offer to assist with flood management in Bangladesh. Additionally, both sides noted the upcoming 50th anniversary of China-Bangladesh diplomatic relations next year.
This development is expected to significantly boost trade relations between the two countries and provide new opportunities for Bangladeshi exporters in the vast Chinese market.
News Source: The Daily Star
