MoU signed with India on exporting 8m pieces of RMG

FE Team | Published: September 17, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
A memorandum of understanding (MoU) on procedural arrangements for import of eight million pieces of readymade garment (RMG) by India from Bangladesh on preferential tariff rate under South Asian Free Trade Area (SAFTA) was signed Sunday.
Joint Secretary of the Ministry of Commerce Abdul Wahab Mian signed the MoU on behalf of Bangladesh government, while Deputy High Commissioner of India Mukta D Tomar signed it for India.
Commerce Secretary Feroz Ahmed and Indian High Commissioner Pinak Ranjan Chakravarty were present during the MoU signing ceremony at the conference room of the commerce ministry in the secretariat.
As per the MoU India will import 8.0 million pieces of apparel items from Bangladesh in one calendar year duty-free without any conditionality of sourcing of fabrics or port restrictions.
Welcoming the MoU the commerce secretary said: "This is an important step in providing improved market access for products from Bangladesh into India in order to address the existing trade imbalance in bilateral merchandise trade."
India is the second largest trading partner of Bangladesh next to China in terms of both import and export, said Feroz Ahmed.
"But export to India from Bangladesh is not so significant," he said adding, "We import about US$2.0 billion but our export to India is less than $300 million."
The commerce secretary, however, lauded the announcement by India at the 14th South Asian Association for Regional Cooperation (SAARC) Summit held in New Delhi in April 2007 to provide duty-free access to products from the least developed countries (LDCs) including Bangladesh by 2007.
Commenting on the MoU the Indian High Commissioner to Bangladesh said "It is an important milestone in our trade relations."
"Signing of the MoU reiterates our commitment to providing improved market access of products from Bangladesh to India," said Pinak adding, "the procedural arrangement cover a total 185 tariff lines at six digit level."
He said India is the 10 the major destination of exports from Bangladesh in 2006-07 and the largest in the developing countries.
"Exports from Bangladesh to India have gone up by 480 per cent in the last five years, whereas its global export have gone up by only 104 per cent in the same period," said the Indian High Commissioner welcoming the trend.
The government has decided to improve trade infrastructure and develop integrated check posts at seven land customs stations for facilitating trade, he said.
To augment trading of more products between these two countries, a separate MoU will be signed between Bureau of Indian Standards (BIS) of India and Bangladesh Standards and Testing Institution (BSTI) of Bangladesh in June next, he said.
"India recognises the need for addressing the trade imbalance and both sides are looking at ways and means to bridge this gap," Pinak R Chakravarty said.
Apart from the senior officials of the commerce ministry and Indian High Commission representatives from Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) were also present during the MoU signing ceremony.