The New Nation - Internet Edition

Pulack Ghatack

Bangladesh could not tap the full potentials of export growth by entering into the Taiwanese market availing of duty-free access opportunity provided by that country.

Bangladesh at the same time failed to achieve any extra facility from China, under whose pressure the country is de-linked to Taiwan in many ways.

According to sources, the country could not even open an office in Taipei to deal with the issues of Bangladesh's interests there.

But economists and businessmen say, when clinging to "One China policy," Bangladesh can also forge strong economic ties with Taiwan like many other countries.

China is earning huge profit by exporting its products, gaining large construction works in Bangladesh by utilising Bangladesh's intention to maintain a good relationship with the rising super economic power in Asia.

Trade deficit of Bangladesh with China, that crossed more than 2.50 billion dollars in the last financial year, has been widening alarmingly. But the country is yet to get any special business facility from China.

As an LDC, Bangladesh enjoys preferential and duty-free quota free market access to many countries including Taiwan, India, Pakistan, EU, Japan, Thailand and Korea.

But China is yet to offer any. Diplomatic initiative from Bangladesh side to gain duty free access to China market is not visible.

Taiwanese are liberal about Bangladesh and the Taipei government in 2006 opened its market for 125 Bangladeshi products scraping all sorts of duties.

But, according to sources, Bangladeshi businessmen could not avail of the facility since its inception, as the Export Promotion Bureau (EPB) did not issue Certificate of Origin (CO) for export.

Meanwhile, the problem was solved recently as a Taiwanese delegation, headed by Frank W Y Chen, discussed the issue of duty-free access facility with the EPB officials in June, sources concerned said.

"EPB now issues CO and we are exporting leather goods to Taiwan," President of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association Rezaul Karim Ansary said.

"Taiwanese investment in Bangladesh is increasing rapidly. Trade is also growing faster with them. But, still there are some bottlenecks to be removed," an official of the Commerce Ministry told this correspondent.

EPB statistics shows that in 2003-04 Bangladesh's export to Taiwan surpassed its import from the country.

In 2003-04 Bangladesh exported goods worth $15.85 million to Taiwan while its import from the country stood at $15.53 million during the period. In 2006-07 export was $21.06 million and import $472.91 million.

Bangladesh received over $200 million investment from Taiwan in the first six months of 2008, which is two-thirds of the investment the Export Processing Zones Authority (Bepza) received in 2007-08 fiscal.

In 2004, Taiwan also expressed interest to recruit 3,000 workers from Bangladesh, another opportunity that the government failed to utilise as well.

While talking to The New Nation President of Bangladesh Knitwear Manufacturers and Exporters Association Fazlul Huq said, "we want business both with Taiwan and China. I think diplomacy should not hinder business activities between the countries."

Dr Atiur Rahman said, "Bangladesh values its relationship with China very much. But, this relationship should not hamper the country's business with others."

"Bangladesh should show courage, skill and prudence in diplomatic and trade talks with its partners," the economist suggested.

Bangladesh should also consider sending manpower to Taiwan since even an unskilled worker could earn over Tk 30,000 a month in Taiwan, experts suggested.

According to the Representative Office of Taiwan in Dhaka, the country needs to set up an office in Taipei for overseeing the Bangladeshi expatriates, but Dhaka is yet to do so.

Many countries in the world including India, Malaysia and India follow the one China policy but established country office in Taiwan, said an official of Representative Office of Taiwan.