India’s non-tariff barriers and imposition of regional tariff have continued to obstruct Bangladeshi exports to the neighbouring country, said Commerce Minister Tofail Ahmed.
He was talking to Dhaka Tribune last week. Commerce Minister went to India’s West Bengal yesterday to attend an international mega trade fair organised by Kolkata-based Bengal Chamber of Commerce and Industry. He inaugurated the nine-day fair yesterday.
Tofail said he would present the situation Bangladeshi is facing in bilateral trade with India in the event.
The fair will continue till December 26. Tofail Ahmed will also inaugurate 27th Industrial Indian Trade Fair on December 27.
KolKata-based MCC Chamber of Commerce is organising the fair.
A total of 90 Bangladeshi stalls will participate in the international mega trade fair this year.
Last year the number of Bangladeshi stalls was 82 and the participants received work orders of $1.18m.
Commerce minister said the local exporters are yet to take full opportunity of duty-free excess into Indian market though the Indian government has approved the facilities since November 2012.
Indian government offers Bangladesh duty-free benefit for all products except 25 alcoholic and beverage items.
The duty benefit came following then Indian Prime Minister Manmohan Singh’s visit to Bangladesh in September the same year.
Export Promotion Bureau data shows the exports to India declined 19% to $456.63m in fiscal year 2013-2014.
Tofail Ahmed emphasised the need to establish regional connectivity to expand trade and investment.
“If we are not regionally connected, our trade will not expand.”
He said the export items of Nepal and Bhutan have crossed the India border but Bangladesh export items can not reach Nepal and Bhutan borders.
Bangladesh is yet to sign a deal with India to build a corridor to Nepal and Bhutan through India.
“If we sign Bangladesh, China, India and Myanmar (BCIM) Economic Corridor agreement, Bangladesh can use corridor in India to export to all these countries plus Nepal and Bhutan,” Tofail Ahmed said.
A trade talk is expected between BCIM countries at Guwahati in India in January on the sidelines of a fair.
Bangladesh then will have an opportunity to discuss about non-tariff barriers and trade with West Bengal and seven sisters.
During the interview, commerce minister also talked about GSP facility in the US market and claimed that the US is currently not providing GSP to any country in the world.
“We had got a little benefit from GSP as only $300m exports would receive the facility,” he said.
On $50bn export target from garments by 2021, he said, “The government may set garment export target at more than $60bn. Our garment export was only $15bn in 2009 and now it is $24.5bn on garment export. It will definitely reach $50bn in next seven years.”
Tofail put stress on the development of infrastructure, diversification of export products and exploring new destinations.
In reply to a question about safety challenges, the minister said the country’s garment factories are now more or less compliant in ensuring labour rights and environmental standards.
He mentioned the inspection of Accord and Alliance in this regard.
Tofail said the risky factories have come down to only 1.80% of total number now after safety measures taken following Rana Plaza incident.
“The risky factories have been shut down for remediation. The buyers now feel confident to return as the industry is trying to ensure internationa standard in workplace safety,” Tofail said.
Australia and China are now good garment market for Bangladeshi exporters, he said adding that Germany’s garment market will exceed that of the US.
After apparel summit in Dhaka this month, the world’s famous brands now look for garment products in Bangladesh, commerce minister said.
“Orders are pouring in Bangladesh after the apparel summit.”
He said big global brands in 11 helicopters visited factories and expressed satisfaction in factories’ conditions during the summit.