Govt seeks to jack up trade with Latin America

Bangladesh wants to grab more of the market share in some Latin American countries where demand for locally made products, especially apparel, is growing for competitive prices, said Commerce Minister Tipu Munshi yesterday.

There are 30 crore customers in Brazil, Argentina, Uruguay and Paraguay, accounting for a combined $4 trillion economy, he said, adding that Bangladesh has huge export potential in the region.

So, the government is planning to sign a free trade agreement (FTA) with this group of countries to facilitate exports from Bangladesh, the minister said at a press conference at his secretariat office in Dhaka upon returning from a visit to those countries.

The minister was accompanied by a business delegation during the visit last week which mainly aimed at exploring the South American markets for Bangladeshi products.

Currently, Bangladesh faces 30 percent duty on exports to the countries in the region and, after state tax and others, the tariff finally amounts to nearly 60 percent.

So, it is difficult for Bangladesh to increase exports to this region. Moreover, Bangladesh has no consulate in Sao Paulo, the main business hub of Brazil where over 8,000 Bangladeshis reside, the minister said.

The government is working to set up a consulate in Sao Paulo so that Bangladeshis can easily do business there and also for easing shipments.

Munshi said Bangladesh would hold an exhibition in Sao Paulo in November this year to showcase products, such as textiles, garment, pharmaceuticals, leather and leather goods, ceramics, and tableware.

The Federation of Bangladesh Chambers of Commerce and Industry will supervise the exhibition in collaboration with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

He also said the leaders of the South American countries would review the tariff structures of this region in December.

During the review, Bangladesh will try to place its demand seeking lowering of tariffs or signing of an FTA, the minister said.

Munshi said the Brazilian government assured of withdrawing an anti-dumping duty it imposed on Bangladeshi jute and jute goods in 1992.

The South American governments also want to do good business with Bangladesh.

For instance, both Brazil and Argentina want to export beef to Bangladesh as they claim that theirs are better than that of other countries, he said.

Moreover, Brazil wants to open a warehouse in Bangladesh to stockpile cotton as Bangladesh is its second biggest buyer worldwide after China, the minister added.

Rubana Huq, the BGMEA president, said if the tariff in the South American countries could be reduced, Bangladesh would be able to avail a very big market in the continent.

Bangladesh’s garment export to Brazil amounted to $160.51 million last fiscal year and $158.38 million in fiscal 2017-18, according to data from the BGMEA.