In order to woo, Bangladesh, China has provided tariff exemption for 97 per cent of Bangladeshi imported products that will be effective from July 1.
Last month the Prime Minister of Bangladesh, Sheikh Hasina, and Chinese President Xi Jinping held a discussion to enhance their bilateral relations during the coronavirus outbreak. Thus, this decision to provide tariff exemption to Bangladeshi goods is an outcome of the discussion.
Following that on Friday, the Ministry of Foreign Affairs of Bangladesh announced that 97 per cent of its items would be exempted from Chinese tariffs.
The Dhaka Tribune reported, Tariff Commission of the Chinese State Council issued a letter on granting zero treatment to 97 per cent of the tariff of Bangladeshi products, calling it as part of the government’s economic diplomacy and the outcome of exchange of letters between China and Bangladesh.
With this notice, the total number of 8,256 Bangladeshi goods will count under 97 per cent of products that would be exempted from the tariffs.
At present, 3095 Bangladeshi goods enjoy duty-free entry to the Chinese market under the Asia-Pacific Trade Agreement (APTA).
Further, with this new notice, 97 per cent of Bangladeshi goods will join this zero-tariff group from 1st July onwards, raising the count of Bangladeshi goods with zero-tariff entry to the Chinese market to 8,256, the report added.
In the Asian-African Conference which happened in the week in Indonesia, Chinese President Xi announced that China will allow duty-free Chinese market access for the smallest amount Developed Countries (LDC) 97 per cent of the tariff lines within a year. However, this beneficial market access scheme will be applied only for imports from the Least Developed Countries (LDC) that have good diplomatic relations with China.
This tariff exemption by China on Bangladeshi goods is expected to help Bangladesh cushioning the economic impact put on by the coronavirus outbreak.