The process of settling trade-related disputes between Bangladesh and China through mediation is expected to begin from June next.
A mediation centre would help exporters and importers of both the countries to lodge complaints to a panel of arbitrators, local traders said.
The mediators would discuss with the businesses concerned of both of the countries for out-of-the-court settlement of trade disputes, they said.
The Bangladesh Indenting Agents' Association (BIAA) would launch the process of mediation shortly with the Chinese Council for Promotion of International Trade (CCPIT), said BIAA president MS Siddiqui, also Chairman of Mediation Centre (for logistic and contact with CCPIT).
The CCPIT and the BIAA would launch the mediation centre in Beijing, China, he said.
"The BIAA has selected seven arbitrators comprising a former judge, an ex-Ambassador, a senior journalist, an ex-Secretary, a former NBR official, a former Mayor and an academician for the mediation process," he added.
Both the BIAA and the CCPIT signed an agreement last year to start a mediation process on trade-related disputes, Mr Siddiqui said.
The BIAA adopted the rules of the agreement in December last.
The pool of arbitrators would assess the status of Chinese companies through credit-rating to help Bangladeshi importers select the companies for purchasing products.
Complaints relating to breach of contract by exporters and importers, delay in payment of import bill and cheating by showing fake companies are galore in trade deals between Bangladesh and China.
Mr Siddiqui said the problems could be resolved through mediation process.
However, there would be no legal bindings to accept the decisions of the mediation, he said.
"The panel would place a report to the CCPIT if it finds any fraudulence practices by their business," Mr. Siddiqui said.
As per agreement, the CCPIT can take punitive action against the Chinese counterparts on the basis of recommendations of the arbitrators.
The BIAA, as a largest association of import-export companies, would invite all importers and exporters to avail the services of the mediation centre.
Start-up businesses can check the status of Chinese companies before starting businesses or signing any agreement for import and export.
Existing business can lodge complaints to the centre on trade-related disputes like exporting substandard products in breach of contracts, disappearance after taking advance money from importers, false documents to upscale standard of company etc.
Bangladesh imports a large volume of products from China while it exports relatively a small quantity of goods.
Bangladesh imported products worth US$7.540 billion last year from China while its exports were valued at $726.1 million.
A local trader, preferring anonymity, said he signed a contract to import prime quality products from China but the Chinese company sent goods of subsatndard quality.
"When I complained to the company, it declined to accept my claim," he said.
There was none to lodge complaints with and look into the acts of fraudulence, he added.
The mediation centre would be a platform for the local importers who are now feeling helpless after facing such an awkward situation, local traders said.
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