The China-Bangladesh FTA is imperative for the enhancement of bilateral economic and trade cooperation, said Chinese Ambassador in Dhaka Mr Yao Wen on Sunday.
The China-Bangladesh FTA serves as a guarantee for the healthy and stable development of bilateral economic and trade cooperation between China and Bangladesh, he said while addressing a seminar on China-Bangladesh FTA held at the Embassy.
The foundation of economic and trade cooperation between China and Bangladesh is solid, extensive, and diverse. In terms of trade, China has maintained its position as Bangladesh's largest trading partner for 13 consecutive years, with bilateral goods trade reaching $24 billion in 2023, he added.
In terms of investment, China's FDI stock in Bangladesh reached $3.2 billion by 2023, making China the second-largest investing country in Bangladesh.
In terms of contracting, Chinese enterprises have constructed 7 railways, 12 roads, 21 bridges and 31 power plants in Bangladesh.
The China-Bangladesh FTA covers areas such as trade in goods, trade in service, investment, e-commerce and high-tech industry cooperation, providing a basic framework and solid guarantee for future bilateral economic and trade cooperation.
"China and Bangladesh are strategic partners, which will be further upgraded in the future. However, the only trade and investment agreement between the two countries, namely the Agreement on the Encouragement and Reciprocal Protection of Investments signed in 1996, does not align with the increasingly close relations and exchanges between our two countries" the Ambassador said.
With the China-Bangladesh FTA poised to provide a top-level framework for bilateral cooperation, our economic and trade relations are set to embrace a more sustainable, stable and healthy development momentum, he added.
The Chinese envoy said, according to the feasibility study report, the overall tariff on goods imported from China to Bangladesh will significantly decrease after the signing of the FTA, leading to a reduction in import prices.
This will have an immediate effect on alleviating inflation in Bangladesh.
"In the long term, the decrease in prices of raw materials for Bangladeshi products will definitely enhance their competitiveness in the international market, laying a solid foundation for Bangladesh to continuously increase its foreign exchange reserves" he mentioned.
He stated that the China-Bangladesh FTA will also make China's investment in Bangladesh more convenient and efficient, thus making further contribution to employment generation, upgradation of industries and diversification of exports.
Signing FTAs with other countries is an inevitable choice for Bangladesh to achieve its Vision 2041, the envoy added.
Earlier this year, Bangladesh successfully held its general election. The utmost priority for the new government is to achieve stable economic development and graduate from the Least Developed Countries (LDC).
"Signing FTAs with other countries is therefore regarded as a crucial way to achieve these goals. Take China as an example, China accelerated the signing of FTAs with other countries after joining the WTO in 2001" the envoy said.
In spite of the fact that China's overall tariff has decreased from 15.3 per cent in 2001 to 7.3 per cent in 2023, China's industries have developed rapidly, which had driven China's GDP from $1.3 trillion in 2001 to $18 trillion in 2023, tax revenue from $184.9 billion in 2001 to $2.6 trillion in 2023, and tariff revenue from $10.2 billion in 2001 to $42.5 billion in 2022.
Mr Wen said, China stands ready to work together with Bangladesh to announce the conclusion of the feasibility study of the China-Bangladesh FTA in the near future and strive to officially initiate negotiations within this year, so as to conclude the negotiations before 2026, commencing the building of a bilateral free trade zone.
"Right now, China is in a new era of advancing the rejuvenation of the Chinese nation on all fronts through a Chinese way to modernization, while Bangladesh is also at a critical stage of graduating from the LDCs and is working hard to realize its Vision 2041" he added.
mirmostafiz@yahoo.com