Govt to study preferential trade pact with Myanmar

Rezaul Karim | Published: May 07, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

The Commerce Ministry will review the potential of a preferential trade agreement with Myanmar under which both countries are to pare back duties to boost trade, a senior official said.
The ministry is going to hold an inter-ministerial meeting today (Thursday) to take stock of a recent study of the Bangladesh Tariff Commission that suggests trade in goods initially.
"We will review the commission study. The meeting will take the decision," Hedayetullah Al Mamoon told the FE this week.
He, however, said "If we can sign the agreement, we will be able to import a good number of perishable items, especially onion, ginger during crisis period."
The review comes after the study by state-run commission on the potential benefits of such an accord between the two neighbouring nations.
The commission says Bangladesh may proceed to negotiate with Myanmar aimed at forming a bilateral PTA which initially may cover only trade in goods.
Such partial scope agreement may lead to exchange of positive list of products, it says.
Further graduation and expansion of coverage may be undertaken upon the outcome of the proposed preferential deal, the Tariff Commission said.
In fiscal year 2012-13, Bangladesh exported goods worth $13.67 million to Myanmar and imported goods of $484 million from the Southeast Asian nation.
Bangladesh's major export to Myanmar include frozen food, agri-products, chemical products, leather, jute goods, knitwear, woven garments, rice, lentils, fish and timber.
The country imports live animal, vegetable products, prepared foodstuffs, beverages, tobacco, plastics, raw hides and skin, leather, wood and articles of woods, footwear, textiles, and article of human hair from Myanmar. Â
Myanmar could be an opportunity for Bangladesh, considering the country's thrust on 'look-east policy' and entry to the ASEAN (Association of Southeast Asian Nations) market, the senior trade official said.
He said that the Southeast Asian country can also look at Bangladesh as a gateway to exploit market opportunities in South Asia.
Last year, at a meeting of Joint Trade Commission, the two neighbouring countries decided to raise annual bilateral trade from the present $100 million to $500 million.
The meeting had discussed, among other issues, expansion of border trades, cooperation in various sectors including agriculture, food, fisheries, power and mineral resources, and introduction of direct shipping service between the two nations to increase trade.
BSS Adds: State Minister for Home Affairs Asaduzzaman Khan said Wednesday that Myanmar has expressed its interest to sign a Memorandum of Understanding (MoU) to prevent drug smuggling.
"The Myanmar authority has verbally agreed to sign the MoU in this regard," he told BSS after a meeting with a Myanmar delegation at his ministry office.
Brigadier General Kyaw Win, Joint Secretary of CCDAC cum Commander of Drug Enforcement Division of Myanmar led the delegation.
The state minister said, "Our proposal to sign the MoU aimed at controlling drug trafficking" and the visiting Myanmar delegation agreed to sign the MoU after holding discussion with their high-ups.
Bangladesh has long been facing inflow of smuggled contraband drugs like yaba and phensedyl from Myanmar, he said adding, "Our government is conducting anti-drug smuggling drives to prevent drug smuggling into the country."
"We want to sign an agreement with Myanmar for tackling drug and Yaba smuggling and other cross-border crimes," the state minister said.
He said Bangladesh discussed with Myanmar about agreement for preventing drug trafficking at BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) summit in Naypyidaw.
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