Bangladesh, China exchange survey report on potential FTA

Bangladesh and China have exchanged a draft feasibility study report with a view to signing a free trade agreement (FTA) between the two countries to increase trade and investment.

The two countries exchanged the survey report in a ceremony in the conference room of the Ministry of Commerce on Thursday.

Senior Secretary of the Ministry of Commerce Tapan Kanti Ghosh, Chinese Ambassador to Bangladesh Yao Wen, and senior officials of the Ministry of Commerce and related ministries and divisions were present.

Speaking on the occasion, senior commerce secretary Ghosh said that Bangladesh's transition from a least developed country to a developing country is a significant achievement.

“This achievement will create a positive image of Bangladesh in the world,” he said. The graduation to a developing country would also bring new opportunities in investment and trade, but it will also create challenges, he added.

Among the challenges, a least developed country loses duty-free quota-free access to developed countries post-graduation, he pointed out.

As a result, the export products of Bangladesh will have to face the generally imposed duties when entering the market of those countries, said Ghoshy.

There is a possibility of shrinking the export market of Bangladesh in the developed countries, he said adding that FTAs instead will help to promote the export of Bangladesh products.

During the visit of the president of China to Bangladesh on 14-15 October 2016, a memorandum of understanding (MoU) was signed regarding the joint feasibility study on a potential FTA between Bangladesh and China.