Malaysia offers conditional duty-free market access
Tuesday, 4 May 2010
Nazmul Ahsan
Malaysia has agreed to allow duty-free entry of Bangladesh products into its market provided the latter starts negotiations on a bilateral free trade agreement (FTA), official sources said.
The duty-free facility, as sought by the Bangladesh government recently, would be granted with the commencement of negotiations on an FTA between the two countries, assured the Ministry of International Trade and Industry, Malaysia.
'They have also verbally told us that Malaysia would consider giving duty-free access of 19 products to its market under the early harvest programme upon the commencement of negotiations on FTA. Malaysian authorities expect that Bangladesh would review their proposal favorably and agree to start negotiations as soon as possible,' reads a communication of Bangladesh High commission in Kuala Lumpur, made to the Ministry of Foreign Affairs, Dhaka, last week.
Dhaka sought duty-free market access for its 19 products about two months back. The major items against which the facility was sought include halal meat, ceramic, jute goods, woven garments, knit garments, pharmaceuticals, leather goods and fresh vegetables, sources said.
Issues on bilateral trade relations and export of manpower from Bangladesh to Malaysia are expected to be discussed during a meeting
to be held between the Prime Ministers of Bangladesh and Malaysia on May 20 in Kuala Lumpur, a trade official said.
Prime Minister Sheikh Hasina will attend the 6th World Islamic Economic Forum to be held in Malaysian capital, Kuala Lumpur between May 18 and May 20.
Ahead of Prime Minister Sheikh Hasina's visit to Malaysia, the Ministry of Foreign Affairs has put forward the issue of bilateral trade talks, particularly the FTA, to the Ministry of Commerce (MoC) for decision as the issue might come up for discussion during the meeting with her Malaysian counterpart, sources said.
Officials in the MoC said the issue is sensitive as the country for the last two decades could not decide on the issue of forging bilateral FTAs with South Asian countries including India, Sri Lanka and Pakistan.
They said the proposed FTA if signed with Malaysia would definitely bring positive results as far as foreign direct investment is concerned, but it is unlikely to bring about any major outcome in the area of trade, they added.
"The trade volume between the two countries is insignificant and the prospects for increasing the volume is not that bright," a high official in the MoC told the FE.
Bangladesh exported goods worth $31.28 million to Malaysia in 2008-2009 against her import from Malaysia worth $ 694 million during the same period.
Malaysia has bilateral FTAs with Pakistan and Sri Lanka among the South Asian countries.
Malaysia has agreed to allow duty-free entry of Bangladesh products into its market provided the latter starts negotiations on a bilateral free trade agreement (FTA), official sources said.
The duty-free facility, as sought by the Bangladesh government recently, would be granted with the commencement of negotiations on an FTA between the two countries, assured the Ministry of International Trade and Industry, Malaysia.
'They have also verbally told us that Malaysia would consider giving duty-free access of 19 products to its market under the early harvest programme upon the commencement of negotiations on FTA. Malaysian authorities expect that Bangladesh would review their proposal favorably and agree to start negotiations as soon as possible,' reads a communication of Bangladesh High commission in Kuala Lumpur, made to the Ministry of Foreign Affairs, Dhaka, last week.
Dhaka sought duty-free market access for its 19 products about two months back. The major items against which the facility was sought include halal meat, ceramic, jute goods, woven garments, knit garments, pharmaceuticals, leather goods and fresh vegetables, sources said.
Issues on bilateral trade relations and export of manpower from Bangladesh to Malaysia are expected to be discussed during a meeting
to be held between the Prime Ministers of Bangladesh and Malaysia on May 20 in Kuala Lumpur, a trade official said.
Prime Minister Sheikh Hasina will attend the 6th World Islamic Economic Forum to be held in Malaysian capital, Kuala Lumpur between May 18 and May 20.
Ahead of Prime Minister Sheikh Hasina's visit to Malaysia, the Ministry of Foreign Affairs has put forward the issue of bilateral trade talks, particularly the FTA, to the Ministry of Commerce (MoC) for decision as the issue might come up for discussion during the meeting with her Malaysian counterpart, sources said.
Officials in the MoC said the issue is sensitive as the country for the last two decades could not decide on the issue of forging bilateral FTAs with South Asian countries including India, Sri Lanka and Pakistan.
They said the proposed FTA if signed with Malaysia would definitely bring positive results as far as foreign direct investment is concerned, but it is unlikely to bring about any major outcome in the area of trade, they added.
"The trade volume between the two countries is insignificant and the prospects for increasing the volume is not that bright," a high official in the MoC told the FE.
Bangladesh exported goods worth $31.28 million to Malaysia in 2008-2009 against her import from Malaysia worth $ 694 million during the same period.
Malaysia has bilateral FTAs with Pakistan and Sri Lanka among the South Asian countries.