Seoul extends zero-duty access to 878 Dhaka goods

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Nazmul Ahsan
South Korea has extended duty-free access to 878 Bangladeshi goods including garments from July this year to boost trade ties between the two nations, officials said Thursday.
Asia's fourth largest economy made the offer under the Asia-Pacific Trade Agreement (APTA) of which both Dhaka and Seoul are members, Commerce Ministry officials said.
The proposal follows China's duty-free access offer to 4,721 Bangladeshi goods, the boldest by a developing country that has even caught the local trade officials by surprise.
Officials said although Seoul's zero-duty list is one-fifth of China, it would benefit Bangladesh immensely as most of Dhaka's export items are eligible for the offer.
"Ready-made garments, jute and jute goods, pharmaceuticals, leather, leather goods and bi-cycle are included in Seoul's duty-free list," a high official of the Ministry of Commerce (MoC) told the FE.
"If our exporters can exploit the opportunity fully, it'll benefit our export enormously," he said, adding Bangladesh got the offer due to its status as a least developed country.
South Korea announced the preferential trade access offer during an APTA meeting in Seoul, a trade diplomat said. Until now only a few Bangladeshi goods enjoy such access to the far eastern Asian country.
The South Korean offer will be effective from July, he said, adding the goods in the list must have 35 per cent of their values added in Bangladesh if they were to enjoy zero-duty facility.
Seoul has allowed "regional cumulation" facility, meaning the products whose raw materials are outsourced from other APTA members will also avail the duty-free access to South Korean market, officials said.
Thailand, Laos, Myanmar, Sri Lanka and China are other members of APTA, formerly known as Bangkok Agreement.
Officials said Bangladesh also needs to offer duty-free access to some South Korean products as part of the arrangements made in the APTA.
Presently, Bangladesh enjoys duty-free access to 27 European Union nations under its Everything but Arms (EBA) trade access facilities the continental grouping extended to the world's least developed nations.
Thanks to the EBA and its precursor GSP (Generalised System of Preference), Bangladesh apparel sector has become a twelve billion dollar industry in just little over a decade's time.
The country also enjoys duty free access of hundreds of products to countries in North America, Asia and Oceania. But in most cases, Bangladesh's main export item, apparel, has been made off-limit to these generosities.
Experts said zero-duty access of Bangladeshi garments, leather and leather goods to more than a trillion dollar Korean market would boost local industry and export earnings.
"The offer is a very important one for Bangladeshi merchandise as South Korea is Asia's fourth largest economy and one of the fastest growing in the world," said a trade official.
"Especially apparel and clothing market in South Korea is worth multi-billion dollars with China ruling the roost," he said, adding Bangladeshi garments will be competitive in Seoul.
Presently, trade between Korea and Bangladesh is negligible. Bangladesh exported goods worth only $100 million to Korea in 2008-2009 financial year.