Anti-dumping duty on jute goods
The number of trucks carrying jute and jute goods to India through the Benapole land port has declined sharply after New Delhi imposed a high anti-dumping duty on Bangladeshi goods on January 5 ranging from US$19 and $352 per tonne. We should not forget that our products are allowed into the Indian market on zero-tariff basis under the South Asian Free Trade (SAFTA) agreement, and the argument being put forward today by the Indian authorities that the move has been taken to protect its domestic industry goes against the spirit of SAFTA.
Jute remains the third largest earning sector of Bangladesh, and during the last fiscal nearly $1billion was earned from the export of the golden fibre, of which 20 percent went to the Indian market (which constitutes 8 percent of the Indian market). Hence the argument that Bangladeshi jute is undercutting Indian jute and "threatening the domestic market" falls flat on its face. Our trade deficit with India is massive and if we are now going to face such impediments on flimsy grounds, it will put a significant dent, not only on our exports but also on the sector as a whole.
We hope our government will take up the matter in earnest with India to resolve this sticky issue. We should also make active efforts to diversify our export markets beyond the traditional markets so that such unforeseen shockwaves can be handled better. Lastly, any such sudden imposition of duty renders SAFTA ineffective, something that should be avoided by all signatory countries.
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