Bangladesh, Indonesia set to sign PTA

Agreement will boost trade, says Tofail

Bangladesh will sign a preferential trade agreement (PTA) with Indonesia to increase trade and export volumes by removing all barriers, commerce minister Tofail Ahmed has said.

 “A joint ministerial statement (JMS) will be signed between the two countries this month in order to sign the PTA. The commerce ministers of the two countries will sign the JMS during the visit of the Indonesian president to Bangladesh at the end of this month,” Tofail told reporters after a meeting with the Indonesian ambassador to Bangladesh, Rina Soemarno, at the Secretariat yesterday.

Bangladesh was facing problems in exporting readymade garments (RMGs) to Indonesia due to the high duty imposed by that country, the minister said.

“Bangladesh, as an LDC, could get duty- and quota-free trade facilities on exportable items to Indonesia in accordance with the World Trade Organisation’s decision, but it's not getting such facilities. Bangladesh has urged the Indonesian government to allow duty- and quota-free access entry of Bangladesh’s exportable items,” he added.

Despite trade barriers and high duty, Bangladesh exported only USD 46.39 million worth of goods to Indonesia in the 2016-17 fiscal year, while it imported USD 1107.1 million worth of commodities from Indonesia during the same period, the minister said.

Describing Indonesia as a friend of Bangladesh, the commerce minister said: “Despite huge trade opportunities, Bangladesh has failed to achieve its expected trade with Indonesia due to high duties on exportable items.”

The two countries have already taken steps to increase the trade volume by sending businesspersons to each others' country, he added.

According to the commerce minister, “Traders of the two countries would identify the sectors to increase trade, thereby creating a new prospect for trade. Businessmen of both countries should utilise this opportunity.”

It would be possible to increase export and trade volumes after signing the PTA with Indonesia by removing all trade barriers, said Tofail Ahmed.

Bangladesh is going to enter the list of developing countries from the list of least developing countries (LDC) as it has already fulfilled all the criteria. Three conditions have to be fulfilled to enter the list of developing countries from the status of an LDC.

Bangladesh has already achieved these conditions: the county’s per capita income has now reached USD 1,610 against the required USD 1,242; its human assets index has reached 72.9 per cent against the required 66 per cent; and its economic vulnerability index has reached 25 per cent as against 30 per cent.

 Commerce secretary Shubhashish Bose and additional secretary (export-2) Tapan Kanti Ghosh were also present during the meeting.

 

 

Bangladesh, Indonesia set to sign PTA

Agreement will boost trade, says Tofail

Bangladesh will sign a preferential trade agreement (PTA) with Indonesia to increase trade and export volumes by removing all barriers, commerce minister Tofail Ahmed has said. A joint ministerial statement (JMS) will be signed between the two countries this month in order to sign the PTA. The commerce ministers of the two countries will sign the JMS during the visit of the Indonesian president to Bangladesh at the end of this month, Tofail told reporters after a meeting with the Indonesian ambassador to Bangladesh, Rina Soemarno, at the Secretariat yesterday. Bangladesh was facing problems in exporting readymade garments (RMGs) to Indonesia due to the high duty imposed by that country, the minister said. Bangladesh, as an LDC, could get duty- and quota-free trade facilities on exportable items to Indonesia in accordance with the World Trade Organisations decision, but its not getting such facilities. Bangladesh has urged the Indonesian government to allow duty- and quota-free access entry of Bangladeshs exportable items, he added. Despite trade barriers and high duty, Bangladesh exported only USD 46.39 million worth of goods to Indonesia in the 2016-17 fiscal year, while it imported USD 1107.1 million worth of commodities from Indonesia during the same period, the minister said. Describing Indonesia as a friend of Bangladesh, the commerce minister said: Despite huge trade opportunities, Bangladesh has failed to achieve its expected trade with Indonesia due to high duties on exportable items. The two countries have already taken steps to increase the trade volume by sending businesspersons to each others country, he added. According to the commerce minister, Traders of the two countries would identify the sectors to increase trade, thereby creating a new prospect for trade. Businessmen of both countries should utilise this opportunity. It would be possible to increase export and trade volumes after signing the PTA with Indonesia by removing all trade barriers, said Tofail Ahmed. Bangladesh is going to enter the list of developing countries from the list of least developing countries (LDC) as it has already fulfilled all the criteria. Three conditions have to be fulfilled to enter the list of developing countries from the status of an LDC. Bangladesh has already achieved these conditions: the countys per capita income has now reached USD 1,610 against the required USD 1,242; its human assets index has reached 72.9 per cent against the required 66 per cent; and its economic vulnerability index has reached 25 per cent as against 30 per cent. Commerce secretary Shubhashish Bose and additional secretary (export-2) Tapan Kanti Ghosh were also present during the meeting.