Bangladesh yet to reap full benefits of duty-free market access in China: Experts

Despite obtaining almost 98 per cent duty-free market access in China, Bangladesh can’t take the opportunities properly yet due to lack of aggressive export promoting activities, building a solid B2B linkage, establishing a local presence and participating in online sales, experts have said.

They came up with these observations at a seminar on ‘Making the Most of Market Access in China: What Needs to be Done?’ jointly organised by Bangladesh China Chamber of Commerce and Industry (BCCCI) and Research and Policy Integration for Development (RAPID) at Pan Pacific Sonargaon in Dhaka on Wednesday.

In the seminar, experts suggested focusing on product quality and diversification and signing a trade agreement to boost Chinese investment-backed export expansion.

Speaking at the event, the Chinese ambassador to Bangladesh Li Jiming hoped that Bangladesh would be member of Regional Comprehensive Economic Partnership (RCEP) soon.

“The relationship between Bangladesh and China is well in trade and investment. However, Chinese commercial bank can be set up in Bangladesh for the sake of financial cooperation more. There are a lot of projects undertaking by Chinese companies in Bangladesh. Many mega projects will also complete soon,” he said.

Jiming also said, “Bangladesh has a brighter future. There is a meaningful industrialisation. China government provides Bangladesh zero tariff export facilities. It’s a very crucial. We are working G2G as well.”

Commerce minister Tipu Munshi said, “Our apparels are exported more in USA and European countries but the volume is lower in Chinese market. We have to work and make proper strategy to take the opportunities.”

“Bangladesh is going to graduate LDC by 2026. Now we need a comprehensive action plan. Besides, the gaps in different sectors should be addressed soon. And, more and more fairs and branding of our products are also requirement,” he added.

Presenting the key-note paper, RAPID chairman Mohammad Abdur Razzaque said despite obtaining zero-tariff market access facility to most products, Bangladesh’s exports to China remain rather modest. Since 2021, China has provided Bangladesh duty-free market access in almost 98 per cent of tariff lines. Prior to that, Bangladesh used to get similar market access in 61 per cent of Chinese tariff lines.

“Bangladesh exported to China $680 million in 2021 FY while Bangladesh imports around $13 billion from China each year. Bangladesh’s potential exports to China should be at least $3 billion,” the economist informed.

He said china is leading science and technology. China imports products from different countries every year worth around $2.7 trillion dollars. So, it has huge market.

“LDC graduation in 2026, duty-free benefits will end with graduation. Bangladesh should negotiate a trade agreement with China. As part of the agreement, China can consider Bangladesh as a regional manufacturing hub to supply to other markets,” the economist also said.

He added that Chinese consumers are focusing more on high-quality products. Bangladesh should develop a long-term strategy for export promotion to Chinese as China will soon emerge the world largest retail market.

RAPID executive director and also Dhaka University professor Dr M Abu Eusuf moderated the function and BCCCI president Gazi Golam Murtoza chaired the event.

BCCCI acting secretary general Al Mamun Mridha said there is a special relation between Bangladesh and China for long. The trade gap should be reduced. Bangladesh can take the opportunities through product value addition. Shipping cost should be reduced to facilitate trade.

He also urged China investors to invest more in Bangladesh’s potential sectors like e-commerce and agriculture.

Speakers discussed various factors restraining exports to the Chinese market and what can be done to make the most out of the extended market access facility.

Vice chairman of Export Promotion Bureau (EPB) AHM Ahsan said they are scrutinising how to increase Bangladesh’s export volume, “Our main exportable item is RMG. Our export growth is low in the Chinese market despite obtaining more tariff facilities there. We have to work as per the demand of Chinese market,” he added.