In a bid to remove trade barriers and increase bilateral trade with Russia, Dhaka and Moscow are expected to sign a memorandum of understanding (MoU) next month.
Commerce Minister Tipu Munshi announced this after a meeting with Russian Ambassador to Bangladesh Alexander Ignatov at his secretariat office in Dhaka on Tuesday.
“Bangladesh has been maintaining a good relation with Russia in terms of trade and commerce. But the bilateral trade and commerce did not increase as per expectations due to some complexities,” explained Tipu Munshi.
According to Export Promotion Bureau (EPB) data, in the previous fiscal year (FY2017-18), Bangladesh exported goods worth $485.22 million to Russia, up by only $20.6 million from $464.62 million in FY2016-17.
"The MoU will allow banking transactions between the two countries to reduce difficulties related to trade and commerce," said Tipu.
Currently, there are no banking transactions between Bangladesh and Russia, and trade is being done through Telegraphic Transfer (TT).
Tipu added that there is huge demand for Bangladeshi products such as apparel items, sea foods, potato, and medicine in the Russian markets. "The agreement will open a new avenue for Bangladesh in the Russian markets," he opined.
The minister also urged The Netherlands Ambassador to Bangladesh Harry Verweij to set ethical prices for apparel goods imported from Bangladesh to their markets, during another meeting yesterday.
"Bangladesh is marching forwards and building large apparel factories with full-fledged compliance in terms of workplace safety and work- friendly environment," said Tipu.
He explained that in order to make the factories safe, the owners have to spend large sums of money. Furthermore, the workers' wages have also been increased. "But buyers did not increase prices of products.
"Netherlands is a big market for Bangladeshi apparel goods and hence the Dutch buyers should set an ethical price," he added.
According to Export Promotion Bureau (EPB) data, Bangladesh earned $1.20 billion exporting goods—mostly apparel products—to Netherlands in FY2017-18.
