South Korea has decided to allow duty free access of Bangladeshi goods to its market aiming to augment bilateral trade, officials said.
The Korean government has recently forwarded its decision to the commerce ministry offering duty free access of over 300 Bangladeshi products to its market from the current year.
"We have received the South Korean offer to allow duty free access of Bangladesh goods to the Korean market," a senior commerce ministry official told the FE.
He said the Bangladeshi products that would enjoy the benefits as offered by the South Korean government includes textile items, synthetic fibers, jute goods, silk items, cotton, automobile parts, dry foods etc.
Welcoming the move from the South Korean government he said the country's benefit would largely depend on how much the Bangladesh businessmen can utilise the opportunity.
The commerce ministry will seek opinion from the apex trade body - the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) - Export Promotion Bureau (EPB) and Tariff Commission - on how the South Korean offer could be optimally utilised.
The issue might be discussed in an upcoming meeting of the Asia Pacific Trade Agreement (APTA) signatory countries to be held in Shanghai of China next month where South Korea is also a member.
Currently the bilateral trade is in favour of South Korea. But the Korean exports to Bangladesh is on the decreasing trend.
In the fiscal year 2007 South Korea exported goods worth US$612 million to Bangladesh, while imported goods worth $142 million, he said.
In 2007 South Korean export to Bangladesh decreased by 5.7 per cent compared to that of the previous fiscal, while Bangladesh's export to South Korea rose by 106 per cent compared to that of the previous year.
Bangladesh imports petrochemical items, paper products, machinery, high-quality fabrics and electronic items from South Korea, while it exports frozen foods, garment products and naphtha to South Korea.
When contacted the South Korean Ambassador to Bangladesh Mr Suk-Bum Park said: "The duty free offer that covers almost all items would help augment Bangladesh's export to South Korea significantly."
He hoped that Bangladeshi business people would have a good look to the offer to reap the maximum benefit out of it.
