Center For Research In Indo

Bangladesh-China India Trade Development

Sankor Sarkar ( Bangladesh)

Bangladesh is geographically enclosed by India from three sides. Actually, India is a friendly neighbouring country like Nepal, Bhutan, Mynamar, Sri Lanka. India helped Bangladesh in many ways during the liberation war in 1971. More than 11000 Indian army sacrificed their lives during the freedom struggle of Bangladesh. India provided food, shelter and medical treatment for nearly one crore of refugees  from Bangladesh for a period of  nearly an  year.   This had created a favorable  international opinion for achieving the goal of independent Bangladesh. Later on, Bangladesh emerged as an independent country. Pakistan surrendered to the joint command of  India and Bangladesh. Bangladesh is ever grateful to  India for her liberation. Gradually, India and Bangladesh joined the Regional Cooperation on Trade and Commerce, Communication, Education, Culture, Water sharing, Fuel, Defence, even war against terrorists & separatists also.

 

Recently, Indian Foreign Secretary Mr. Vinay Kawatra visited Bangladesh in the middle of  February 2023. During his visit, he met Bangladeshi Foreign Secretary Mr.  Masud bin Momen  and talked on bilateral discussion of both the countries.

 

 Bangladesh and India already decided to work through Comprehensive Economic Partnership Agreement (CEPA) for the economic development of both the  countries. Now China also wants to work for all out economic development as a partnership with Bangladesh.  The concerned departments of both the countries have started to  work primarily. Even the concerned officers of both the  countries are working now to prepare a structural frame of the agreement.  An officer of Bangladesh Commerce Ministry says that India and China  are the biggest Partners of our Trade Commerce and Development Project.  Bangladesh decided  for CEPA agreement with India.  On the other hand, Bangladesh is also positive with China regarding CEPA. Not only that being a developing country after 2026 Bangladesh will not get its existing world marketing facilities. For that reason, Bangladesh is thinking for various types of Commercial Agreements like PTA, FTA, CEPA ctc by the instruction of topmost authority of Bangladesh Government and accordingly concerned Ministries of Bangladesh. Regarding CEPA, concerned sources says, China has been  knocking Bangladesh again and again to start discussion formally and Chinese High Commissioner to Bangladesh Mr. Yao Uean has discussed with Bangladeshi Commerce Minister Mr. Tipu Munshi on 2nd  February 2023. Perhaps, Bangladesh and China will arrange a bilateral discussion regarding CEPA  during coming  March 2023. Though China gave tax concessions  to Bangladesh but Bangladesh has not yet been  able to increase export to China. Bangladesh and China both countries are the member of Asia Pacific Trade Agreement(APTA). As a member of APTA, Bangladesh has been getting duty-free facility in Chinese local market for 83 items and  under WTO agreement Bangladesh has been gaining  more than 5000 items duty free facility in Chinese market. Besides, China has increased export business in Bangladesh and on the other hand, Bangladesh could not increase export business to China. As a result, day by day, trade and commerce value difference is increasing between Bangladesh and China. In 2021-2022, Bangladeshi export business reduced to 683 million US Dollar. On the other hand, China has increased export business to Bangladesh up to 26253 million US Dollar. The difference of business between the  two countries is 25569 million US Dollar. At last,  it is seen that 13 percent  Bangladeshi goods export reduced to Chinese  market though China has given 98% duty free for Bangladeshi goods. Not only that Export Import Trade business difference between Bangladesh with the biggest business partner China increasing geometrically day by day. In this circumstances, Bangladesh is very anxious to this type of export import trade difference between the two countries. For this reason, Bangladesh is planning to take steps for check and control. Recently, Bangladesh Foreign Minister Mr. Abdul Momen met new Chinese Foreign Minister Mr. S Gang at the Hazrat Shahjalal  International Airport on his way to Africa visit. Mr Momen said to Chinese Foreign Minister that China had agreed and gave commitment to enter Bangladeshi goods into Chinese market as duty free. But Bangladeshi Exporters are not getting that facility, regarding this matter he requested the Chinese Foreign Minister to solve that problem. On 2nd February 2023, when the Chinese High Commissioner met Bangladeshi Commerce Minister Mr. Tipu Munshi said the matter in same voice. He requested to the Chinese High Commissioner as  Export Import trade difference is very big  so he requested the Chinese High Commissioner to give duty free market for Bangladeshi products in Chinese Market and he also told for Chinese Investment in Bangladesh.

 

We have come to know from Bangladeshi newspapers that West Bengal merchants from Kolkata want to do business in Bangladesh. In that case not only from Kolkata, but also the businessmen  from other parts of India can think about the matter positively for export import business in Bangladesh like other Indians who have been engaged in business in   Middle East, Hong Kong, Singapore and all over the world.

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