Chinese ambassador: Time Bangladesh, China signed FTA with investment deal

Out of around $12.09 billion bilateral trade in FY20, Bangladesh's export to China only accounted for $0.60 billion while imports from China added up to a mammoth $11.49 billion

Bangladesh and China should soon signal a comprehensive bilateral Free Trade Arrangement (FTA) to enhance exports to the Chinese market, Chinese Ambassador to Bangladesh Li Jiming said about Wednesday.

Speaking as a special guest, Jiming stated both nations should think about an FTA combined with an investment deal.

The dialogue, titled “Bangladesh-China Economic and Trade Relations in the aftermath of the COVID-19 Global Pandemic,” was organized jointly by Economic Reporters’ Forum (ERF) and Bangladesh China Chamber of Commerce and Industry (BCCCI).

Commerce Minister Tipu Munshi, who attended the virtual debate as the chief guest, said though there's been some progress towards signing an FTA with China, more work are had a need to conclude the negotiations and materialize the arrangement.

"I believe this can help Bangladesh face up to the challenges of LDC graduation," he said.

Executive Chairman of Bangladesh Purchase Advancement Authority (BIDA) Md Sirazul Islam and Bangladesh Ambassador to China Mahbub Uz Zaman also joined up with the event as special guests.

Eminent trade economist Mohammad Abdur Razzaque presented the keynote paper at the discussion.

The bilateral trade between the two countries seriously favours China.

Out of around $12.09 billion bilateral trade in FY20, Bangladesh's export to China only accounted for $0.60 billion while imports from China added up to mammoth $11.49 billion.

Minister Tipu said within its unilateral market gain access to schemes for LDCs, China has got allowed duty-free usage of Bangladesh for 97% of its tariff lines which became effective from July 1 this past year.

Under this initiative, 8,256 Bangladeshi goods enjoy zero tariff facility for exports to this market.

"I strongly believe by totally utilizing this DFQF [duty-free, quota-free] center, the trade imbalance could be reduced to a larger extent."

The commerce minister said Bangladesh gives utmost priority to its relations with neighbouring and regional friendly countries like China as the relationship between your two countries is rolling out robustly based on mutual trust and interests.

Ambassador Jiming said both entrepreneurs and businesses of China and Bangladesh suffered from the pandemic due to the bilateral trade witnessed a good fall of 13.6% last year from 2019.

He, however, termed attainment of Bangladesh's 6.1% GDP expansion in the outgoing fiscal time as "very encouraging".

The Chinese ambassador said although there is a big trade imbalance, you will see more exports from Bangladesh to China in the coming days and nights.

He said he was fully confident that under the Chinese Belt and Highway Initiative, you will have more areas of cooperation in several fields like 5G interaction, high-speed railway in addition to the G to G and PPP initiatives.

BIDA Executive Chairman Md Sirazul Islam said that the authority would facilitate and expedite expense from Chinese investors. "You want to see even more FDI from China. BIDA is definitely always prepared to support investment promotion and policy advocacy,"

He said it could be a real video game changer if Bangladesh could tap the probable Chinese market.

"If we are able to explore even 1% probable of the Chinese industry, then your exports of Bangladesh to China will total $25 billion."

Ambassador Mahbub Uz Zaman said there is an outstanding program for cooperation between your several countries for further consolidating the bilateral relations.

"Chinese investments to Bangladesh have been playing a crucial role and have been contributing towards occupation generation," Mahbub said adding that the Chinese shareholders are looking forward to purchase the special economic zones in Bangladesh.

Razzaque suggested that Bangladesh rise its RMG exports to China. It can expand cooperation with China in artificial cleverness, robotics, and can set up a technological hub with China.

He said that establishing a good full-fledged FTA is an option to wthhold the available market access in China, but it comes with reciprocity.

He said there are estimates to advise that a in depth bilateral FTA could have an overall great effect on Bangladesh’s exports by 22% of current exports to China.

On the other hand, Chinese exports to Bangladesh could increase by about 16%.

Any FTA cope with China should be supported by an investment contract that Bangladesh will be able to expand its exports and will keep bilateral trade deficits within reasonable, said Dr Razzaque.

ERF President Sharmeen Rinvy and Joint Secretary Standard of BCCCI Al Mamun Mridha delivered welcome remarks.

BCCCI President Gazi Golam Murtoza chaired the event while ERF General Secretary SM Rashidul Islam moderated the function.