China has decided to provide 100 percent duty-free access to products from Bangladesh, as well as other least developed countries (LDCs).
Chinese Ambassador to Bangladesh Yao Wen conveyed the decision when he called on Foreign Secretary of Bangladesh Jashim Uddin at the foreign ministry yesterday.
“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,” Jashim told reporters.
In 2022, China had granted duty-free access to 98 percent of Bangladeshi goods, including 383 new products, especially leather and leather goods.
In 2020, it was for 97 percent of Bangladeshi products.
China is Bangladesh’s largest trading partner. It exported products to Bangladesh worth more than $18.6 billion in fiscal year 2022-23, while Bangladesh’s exports to China were worth about $676 million.
Jashim added that China had been the source of most foreign direct investment after the formation of the interim government, which amounted to about $8 million.
“We are expecting an increase in our exports to China,” he said, adding that the procedure to export mangoes from Bangladesh is almost complete.
“We can export mangoes to China from next year,” the foreign secretary said, adding that Bangladesh was working with China to export other fruits like jackfruits and guavas.
In FY20, China imported $2.4 trillion worth of goods, of which Bangladeshi exports accounted for only 0.05 percent, highlighting the huge scope for trade that exists in the Chinese market.
In a paper, MA Razzaque, chairman of the Research and Policy Integration for Development, said Bangladesh could earn $25 billion in exports if it could grab only a one percent share of what China imports.
However, economists opine that Bangladesh will have to diversify its export basket, which is heavily reliant on the garment industry, in order to increase exports to China.
“We also discussed regional and multilateral issues. We also discussed supporting each other in international forums,” Jashim said.
He added that Yao Wen had also offered to provide help in terms of flood management.
Next year will mark the 50th anniversary of China-Bangladesh diplomatic relations, which was also discussed.
