Bangladesh banks on preferential trade terms to improve export earnings

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While an FTA stipulates free trade between countries, a PTA is a lot less broad, covering preferential tariffs for a couple of products or services.

Bangladesh, which got the position of lower middle-income region status found in 2015, currently benefits from preferential tariffs for its export of goods for some countries, nonetheless it might lose usage of such lower trade terms once it again graduates out from the least developed nation list by 2024, according to the Globe Trade Organisation (WTO) norms.

While an FTA stipulates free trade between countries, a PTA is a lot less broad, covering preferential tariffs for a couple of products or services.

Bangladesh, which got the status of lower middle-income region status in 2015, currently advantages from preferential tariffs for its export of things to some countries, but it might lose usage of such lower trade terms once it graduates out of your least developed nation list by 2024, according to the Globe Trade Organisation (WTO) norms.

Bangladesh has already started taking initiatives found in this regard. In line with the Commerce Ministry, the federal government is reviewing its many trade agreements with 44 countries to determine the options of signing PTAs with them.

Up to now, Dhaka has approached 11 countries for inking FTAs with them. The responses from these countries have been positive, the sources stated. Besides, significant progress features been done to sign PTA with Nepal and Indonesia, according to the sources.

Bangladesh signed its first PTA with Bhutan in December 6 to celebrate the 50th anniversary of diplomatic relations between the two countries. Upon this day in 1971, Bhutan recognised Bangladesh's independence.

Bangladesh Primary Minister Sheikh Hasina and her Bhutanese counterpart Lotay Tshering witnessed the signing ceremony virtually.

Moreover, the PTA signing with Nepal has advanced significantly, along with Indonesia's. The Commerce Ministry sources explained that signing of FTAs or PTAs will end up being inked with these countries.

Some 100 Bangladeshi products are certain to get duty-free access into Bhutan. Included in these are garments, jute products, leather merchandise, dry cell batteries, fans, watches, potatoes, condensed milk, cement, toothbrush, plywood, particle board, mineral and carbonated water, green tea, orange juice, pineapple juice, and guava juice.

Alternatively, some 34 Bhutanese products will get duty-free usage of the Bangladeshi market. These include orange, apple, ginger, juice, milk, all natural honey, wheat or meslin flour, homogenised jam, fruit jellies, marmalades, soybeans, mineral water, wheat bran, cement clinker, lime stone, wooden particle boards and wooden furniture.

Both the countries may also be in a position to improve the number of items slowly but surely through consultation. The trade between your two neighbouring countries right now stands at around US$6 crore, that was US$2.5 crore in 2012-13 fiscal.

Source: https://unb.com.bd

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