The New Nation - Internet Edition

CHINA has agreed to reduce its trade gap with Bangladesh through duty-free access of more Bangladeshi products. Bangladesh's annual exports to China are very insignificant compared to its imports from that country. During the fiscal year 2007-08, this gap stood over as high as three billion US dollars. Bangladesh imported Chinese goods worth over US$3,100 million against export of over US$100 million during the year. The trade gap during the preceding year was more than US$2,444 million.

Bangladesh's poor export performance is responsible for this. Under the Asia Pacific Trade Agreement (APTA), Bangladesh has been given duty-free and quota-free access for 84 of its products but the opportunity could not be utilised as reportedly there are only seven items to get the facility. Against this backdrop Bangladesh requested the visiting Chinese trade team to allow duty-free access to 74 more products to narrow the gap. The team is exploring the possibility of increasing import from Bangladesh. The Chinese importers signed 12 contracts with Bangladeshi exporters worth US$80 million that will help narrow the trade imbalance. China has shown this gesture at a time when many developed countries have shown reluctance to allow access to products under the Doha round trade negotiations.

Trade balance with most partners is against Bangladesh. To come out of this, Bangladesh must strive hard to exploit its export potential to the fullest. This can be achieved through diversification of exports. The Chinese market may be surveyed for exploring exports. Information about the Bangladeshi products, their quality and competitive prices must be made available to potential buyers. Trade fairs may be organised in different cities in China. Chinese importers should be invited to fairs that are organised within the country.