China likely to become important trade partner of Bangladesh: expert

The miraculous growth performances and development history of China offer an opportunity of learning for Bangladesh, a specialist said.

While most developed economies like the USA, Britain and europe experienced falling output as a result of COVID-19 pandemic, China showed its resilience by maintaining growth momentum this past year, Abdur Razzaque, research director of leading local think-tank Policy Research Institute of Bangladesh, said at a recently available virtual discussion.

It has emerged as a significant global economical power having achieved remarkable transformations of its economy and along the way to become the world's most significant exporter and one of the most important sources of foreign investment, he said.

Taking into consideration the geographic proximity and strong economic prospects of Bangladesh and China, Razzaque said that China is likely to become a far more important trade and development partner of Bangladesh in the coming years.

Bangladesh's impending graduation from the band of least developed countries (LDCs), set to take place in 2026, testifies to its solid monetary development process, he said.

Effectively coping with COVID-19, revitalizing the export-led growth process, and a renewed dynamism in investment activities are between the most crucial drivers that may put Bangladesh back its recent history of high monetary growth, poverty alleviation, and making progress on achieving Sustainable Development Goals (SDGs), said Razzaque.

As Bangladesh aims to be an Upper Middle-Income Country (UMIC) by the 2031 fiscal year, and a High-Income Country (HIC) status by the 2041 fiscal year, he said China could possibly be a crucial trade and development partner supporting Bangladesh's growth prospects and monetary transformation in a post pandemic world.

Within its unilateral market access schemes for LDCs, the Chinese government has allowed Bangladesh exports to China Duty-Free Quota Free access for 97 percent of its tariff lines from July 1, 2020.

Under this initiative, 8,256 Bangladeshi products enjoy zero tariff for exports to China, Razzaque said.

The researcher, however, underlined the necessity for establishing a full-fledged free trade agreement (FTA) with China to wthhold the available market usage of the Chinese market.

Bangladeshi Commerce Minister Tipu Munshi has said a memorandum of understanding had been signed between your ministries of commerce of both countries on Launching a Joint Feasibility Study of China-Bangladesh Free Trade Agreement in October 2016.

He said FTAs help enhance competitive advantage, increase market access for goods and services, strengthen investors' confidence and a big extent, build Bangladesh's economic sustainability.

"Although some progress have been made, still we have to put lots of effort to summarize the negotiation and materialize the chance of the FTA," said the minister.