Bangla Tariff Commission fears grave effect on China trade
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The impact of the coronavirus outbreak on Bangladesh-China trade has already been visible and could seriously affect it over time, according to the Bangladesh Trade and Tariff Commission, which recently forwarded an initial report on the epidemic to the commerce ministry. Bangladesh's major export sectors have been affected, its report said.
The commission said almost 60 % fabrics of the wovens sub-sector are being imported from China and the negative impact of the epidemic on this sector has already been apparent.
It said some 15 to 20 per cent recycleables and 80 to 85 per cent dyeing chemicals and accessories of knitwear sector originates from China. The supply chain of the items is already facing disruption.
The commission said some 60 to 65 % of country's total finished leather and leather goods has been exported to China which sector may incur a loss worth Tk 30 billion due to the coronavirus outbreak.
Around 40 per cent of raw material of garment accessories and packaging manufacturing industry worth $1.6 billion has been imported from China every year. Due to supply chain disruptions, players in this sector fear a loss worth Tk 15 billion, the commission said in its report.
The commission is now calculating the possible loss from the shipment suspension as a result of coronavirus epidemic, according to a Bangladesh newspaper.
Bangladeshi jute spinners export goods worth $5.32 billion annually to China that now remain suspended, the commission said.
The gross annual import of recycleables for the printing industry from China stands at $1.8 billion. The sector’s loss may are as long as $3.6 billion. China is a top sourcing partner for Bangladesh with gross annual import of $13.85 billion while export to the united states is just about $831 million.
Source: https://www.fibre2fashion.com