Trade ties with Canada to deepen

An opportunity has been created for Bangladesh in the Canadian market as the North American nation is trying to diversify its sourcing countries for higher costs of production in China.
At the moment, China is Canada's largest trading partner with trade worth nearly one billion dollars in bilateral trade between the two countries a day.
Bangladesh's exports to Canada have also been increasing faster in recent years because of duty benefits.
Bilateral trade rose to $1.63 billion in 2011 from $1.39 billion a year ago, according to data from Canada-Bangladesh Chamber of Commerce and Industry (CanCham).
Of the total amount in 2011, Bangladesh exported goods worth $1.07 billion and imported goods worth $555 million. The reason behind a trade surplus in favour of Bangladesh is the duty-free entry of garment items. Canada awarded Bangladesh a duty-free and quota free facility in 2003.
Of Bangladesh's total exports to Canada, 95 percent is garment items. Businessmen of both countries are waiting to celebrate two-way trade at $2 billion at the end of 2012.
Bangladesh has the opportunity to explore more in the Canadian market as the country has export potential in different sectors like garments and textiles, pharmaceuticals, plastic goods, ceramics, furniture, jute and jute goods, bicycles, footwear and leather and leather goods, said Steve McLellan, chief executive officer of Saskatchewan Chamber of Commerce, in an interview with The Daily Star. He was in Dhaka to attend the second Canada Showcase-2012 recently.
McLellan discussed ways to increase bilateral trade between the two countries, investment potential by Canadian entrepreneurs in Bangladesh and the different hurdles to growing trade.
He said China is the largest trading partner for many countries worldwide, but this Asian manufacturing giant is no more viable as a sourcing country for higher costs of production and a shortage of workers.
“So we are looking for new markets. Bangladesh has the opportunity to grab more market share in Canada,” the chief executive said.
On the investment front, McLellan said Canadian entrepreneurs have the opportunity to invest in energy and power, infrastructure, roads and highways, textiles and ready-made garments, services and education.
Both countries should invest in innovative projects. He said joint ventures would be the best option as the local partners would be more aware of the political and economic situation.
On attracting more Canadian investment, the CEO said the private sector and governments of both countries should exchange views and hold business dialogues to disseminate more information on the potential of bilateral trade.
“We need to enhance people-to-people contacts to tap trade potential,” he said.
It is the responsibility of the chamber bodies and trade associations in Bangladesh and Canada to disseminate trade related information among people, he added.
“We have some programmes in the near future from the chamber to gather businessmen from both countries. I hope such programmes will help disseminate information among the businessmen,” he said.
The situation will not improve dramatically overnight, he said. The Canada Showcase is a good example of spreading awareness on the business potential, he says.
“There should be a level of understanding, especially between the investors. We need the relationship to beyond the label to harness trade potential,” McLellan said.
He said the Canadian exporters also have good opportunities to explore the Bangladeshi market as there is good demand for Canadian products that has been created over the years.
Bangladesh can import fruits, canola oil seed, lentils, transports, chickpeas, machinery and farm equipment. CanCham data shows that Bangladesh imported wheat worth $300 million and lentils worth $150 million in 2011.
The import of wheat from Canada was almost nil in 2004, while lentil imports stood at $30 million, data showed.
“So, bilateral trade is increasing at a fast rate,” he said.
Five particular steps might be followed to grab more businesses. Businesses need to have an understanding between them, exchange information, have knowledge on the business opportunity, build partnerships, and celebrate the successes in bilateral trade, he said.

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