Bangladesh has so far failed to derive any significant benefit from the duty-free and quota-free (DFQF) market access facility in China.
The country could not increase its exports to the Chinese market as expected due to lack of exportable products, product standards and marketing initiatives, according to a latest report prepared by Bangladesh mission in China, a copy of which was obtained by the FE.
China has so far granted DFQF facility to 8,549 Bangladeshi products or 97 per cent of the tariff lines in July, 2020.
Earlier under the purview of the WTO provisions, China offered the trade concession to the least developed countries (LDCs) in July, 2010 and Bangladesh used to enjoy the facility for products 60 per cent of its tariff lines.
Following the measures, Bangladesh's exports to China increased from US$458.1 million in fiscal year (FY) 2012-13 to highest $949.41 million in 2016-17, according to official figures.
Later, the exports registered $694.91 million and $731.10 million in FYs 2017-18 and 2018-19 respectively. It was $680.65 million and $600.10 million in the Covid-hit FYs of 2020-21 and 2019-20 respectively.
China is the largest bilateral trading partner of Bangladesh with an annual value of over $12.13 billion. In the fiscal year 2019-20, Bangladesh imported goods worth over $11.53 billion from China.
The Bangladesh mission in China has identified different reasons and barriers to exports included shortage of products as compared to China's demand, obligation to supply goods in accordance with the standards set by China, lack of aggressive marketing and deficit of Bangladeshi branded products.
It has also mentioned that language barrier and lack of ideas about the Chinese market have also been hindering the export growth.
The mission, however, suggested going for aggressive marketing, creating brand image online and onsite, and increasing business-to-business (B2B) connectivity to boost the exports to the Chinese market.
It also recommended improving images of big Bangladeshi brands by opening their outlets there for promotion, marketing, advertising, cultural exchange, etc.
The Bangladesh traders have not entered into China due to their zero-Covid policy that too affected the trade communication, the mission report mentioned.
It also pointed out that the exports to China during the pandemic did not register expected outcome as the Bangladeshi enterprises lag behind online business.
However, the mission report noted that exports were in an upward trend in the last eight months of the current FY.
"To reduce the huge trade imbalance, we are working on different initiatives to increase the export earnings," a senior official told the FE.
The trade concessions under the provisions of the World Trade Organization (WTO) would continue until Bangladesh officially graduates to a developing country status in 2026.
However, Bangladesh will continue to enjoy preferential market access to China under the Asia-Pacific Trade Agreement or APTA, which covers 3,700 HS Codes.
The mission has requested the authorities concerned to take necessary steps to boost the country's exports to China.
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