Beijing grants tariff exemption to 97% of Dhaka exports

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In a significant show of economic diplomacy in South Asia, China has announced tariff exemption for 97% of exports from Bangladesh. And diplomatic sources of Bangladesh have defined the Chinese maneuver as a “key success” in Dhaka-Beijing romance.

The Ministry of Foreign Affairs of Bangladesh announced on Friday that 97% of items covering fisheries and leather products would be exempted of Chinese tariffs.

Beijing's decision came a month after Primary Minister Sheikh Hasina and President Xi Jinping discussed boosting bilateral relation found in the backdrop of the monetary hardship triggered by the COVID-19 pandemic.

“As part of our economic diplomacy, Bangladesh had written to China to exempt our export items from tariffs. In response to the China’s State Council Tariff Commission features issued a notification lately. Bangladesh is one of the Least Developed Countries (LDCs) and that's the reason this decision was used by China”, declared Mohammed Touhidul Islam, Senior Facts Officer of the Ministry of Foreign Affairs.

Friday’s announcement is likely to help Bangladesh cushion the financial affect of the pandemic and in addition emerge just as one beneficiary alongside Vietnam and Chile of the U.S.-China trade war.

Bangladesh imports around $15 billion on Chinese goods but its China-bound exports have been very low compared. The source chain disruption caused by U.S.-China trade war may very well be filled by a raise in export of tariff-exempted goods from Bangladesh. Multiple sectors of Bangladesh will tend to be key beneficiaries of the move.

“Bangladesh already receives tariff-exemption for 3095 items beneath the Asia Pacific Trade Agreement (APTA). Because of the hottest announcement, a total of 8256 things from Bangladesh will become exempted of Chinese tariffs”, Mr. Islam said.
Source: https://www.thehindu.com

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