As many as 97% Bangladeshi products, in a products list basket, will enjoy duty free access in the Chinese market effective from July 1, according to Bangladesh officials.
The opportunity of zero duty in the pandemic is expected to bring new opportunity for Bangladeshi exporters and businesses, said top officials in Bangladesh.
The development came following a formal approach of the Bangladeshi Foreign Ministry which has finally been approved by the State Council of the Chinese Finance Ministry, said a press statement by Bangladesh's Foreign Ministry on Friday.
Bangladesh's highest import is being done from China whereas Bangladesh is still lagging behind manifolds in terms of exporting goods to China, according to the available data.
According to the Federation of Bangladesh Chambers of Commerce and Industries, the trade volume between China and Bangladesh was around $14.68 billion in 2018-19 fiscal year.
And, of the total trade count, there was import trade of $13.86 billion and export of $831 million.
"We still import more than export from China, it will create more possibilities to minimize the trade deficit," Md. Obaidul Azam, an additional secretary at the Bangladeshi Commerce Ministry told Anadolu Agency.
Also, capacity enlarging of Bangladeshi exporters and businesses are important in this regard, Azam added.
And, this will help the country as its economy has already been hit by the pandemic. Bangladesh on Friday reported 45 new deaths and 3,243 fresh cases, surging the total confirmed cases to 105,535 and fatalities to 1,388.
Bangladesh will get the zero treatment as a Least Developed Country, and 8,256 Bangladeshi products will come under treatment as some 3,095 products are already enjoying duty free access under the Asia-Pacific Trade Agreement, it added.
“Business will certainly see a big jump with the latest 97% duty free access to these products,” Borhan Uddin, the director-general for East Asia and Asia-Pacific in the Bangladeshi Foreign Ministry, told Anadolu Agency.
Uddin added: “Defiantly, it’s a good sign in pandemic. And we for a long time were examining the access and working with the country, and will work to nourish the bilateral relationship.”