Finance Minister AMA Muhith said the government planned to set up a mainly readymade garment warehouse in Russia in a bid to increase trade with the Commonwealth of Independent States countries.
“Bangladesh has no warehouse in the world. But we are now thinking of such a one to bring about pace in our exports,” he said at a seminar yesterday.
Muhith urged the entrepreneurs to find a suitable place in the CIS countries to build a warehouse, mostly for apparel goods.
“This is a good idea (building a warehouse) from entrepreneurs, as our products have huge potentials there and such the presence of such a warehouse will help grow exports.”
The seminar was titled as the “3rd Front of Bangladesh’s Export Destination Russia and Other CIS Countries,” organised jointly by Bangladesh Foreign Trade Institute and CIS-Bangladesh Chamber of Commerce and Industry at a city hotel.
“The country has so far only concentrated on EU and American markets for exports. But now the time has come to explore new markets as well with diversified products,” Muhith said.
He said at present the negotiation was on to establish an RMG warehouse in Gujarat, India.
About incentives demanded by businessmen for exports to Russia and CIS markets where duty is very high, he said all incentives would be reviewed or renewed or subtracted by this year.
Bangladesh exported goods of $796m to CIS countries in 2014, and $721m in 2013, which was very insignificant cpmpared to the country’s total capacity, CIS-BCCI said.
It said as the World Cup Football was going to be held in Russia in 2018, Bangladeshi knit garments would have a high demand during the world’s number one sports event.
CIS-BCCI said: “Being the second largest exporter of RMG in the world, Bangladesh should capture the share of 7%, and it may increase exports to $10bn to the CIS countries.”
It also said Russia deserved more attention from Bangladeshi exporters wishing to increase presence in the CIS countries.
Business people and high government officials at the seminar laid emphasis on signing bilateral Free Trade Agreement (FTA) to increase volume of trade with the different countries.
Bangladesh is a signatory in several multilateral FTAs, but has yet to sign any bilateral FTA.
Commerce Minister Tofail Ahmed said the government was currently in talks with Sri Lanka and Turkey for FTA, but some issues still remained unresolved.
Acting FBCCI President Shafiul Islam Mohiuddin said bilateral and regional FTAs were becoming very prominent and happening all over the world now.
“So, there is no alternative to signing FTA to boost bilateral trade,” he said.