Bangla goods to be duty free in China

Regional power play and the increasing competitive trade stakes in the subcontinent have resulted in China advancing duty-free access to Bangladeshi products by six months.

China had decided to allow 84 Bangladeshi goods duty-free access to its market under the Asia Pacific Trade Agreement (APTA), which was originally scheduled to take effect from July 2006.

The announcement was made by Chinese Premier Wen Jiabao during his visit to Bangladesh last August. The 84 items include garments, textiles, frozen foods, leather, jute, jute goods and plastics.

India has already relaxed access to its market for garments from Bangladesh. The Trade and Economic Relations Committee headed by Prime Minister Manmohan Singh had last year instructed the textiles and commerce ministries to finalise some unilateral sops for Bangladesh and Pakistan.

China's latest move has come in an attempt to reduce Bangladesh's trade deficit with that country. Bangladesh had a trade deficit of $1.56 billion with China between July 2004 and June 2005.

China exports textile and textile goods, machinery and mechanical appliances, electrical equipment, base metals and vehicles to Bangladesh.

Bangladesh is China's third largest trade partner in South Asia. In order to expand exports from Bangladesh, China has started sending purchase missions to that country.

Chinese Premier Wen Jiabao, during his visit to Bangladesh, had promised that China would import Bangladeshi commodities in large quantities under the preferential trade policies and promote Chinese investment in the country.

APTA is an initiative of Economic and Social Commission for Asia and the Pacific. It is a preferential tariff arrangement that tries to promote intra-regional trade through mutually agreed concession exchange by the member countries, which are Bangladesh, China, India, Republic of Korea, Laos and Sri Lanka.