Bangladesh, Turkey eye $3b trade in 3 years

Bangladesh and Turkey plan to treble the two-way trade between the two countries by 2015 from the existing less than $1 billion to deepen economic ties, top officials said yesterday.
The trade between the two remained below $1 billion in the last three years. "We want to take it to $3 billion in three years," Turkish Labour and Social Security Minister Faruk Celik told reporters after a meeting at the Economic Relations Division in the city.
"We want to work in a concept that: Our market is your market and your market is ours," he said at the concluding session of the two-day Joint Economic Commission meeting.
The minister, who led a 15-member Turkish delegation during its three-day official tour to Bangladesh, called for diversification of exports basket.
He also suggested facilitation of procedures and reduction of bureaucratic red-tape to reach the new trade target.
"Bangladeshi exporters should take part in international fairs in Turkey to know what type of products the country buys from abroad," Celik said.
Finance Minister AMA Muhith, who led the host country at the meeting of the fourth edition of the JEC, said there is a huge potential for an increase in trade between the two countries.
The two-way trade rose to $1 billion in 2010 from a merely about $300 million in 2008. "The trade has gone up very fast. It tempted us to go for the higher targets."
With the help of a translator, Celik also said decisions taken at the meeting to increase the trade are very significant.
He said his government's decision to open the office of Turkish International Development Agency (TIKA), which coordinates the country's aid around the world, in Dhaka would give them chance to see how their assistance benefits Bangladesh.
He said the commercial counsellor, which was set up with the Turkish embassy in Dhaka, would help sort out potential problems standing in the way of commercial and economic ties.
The Turkish minister also said there might be more direct flights between the two countries.
On recruiting more workers from Bangladesh, Celik said his country's contractors have already hired manpower from Bangladesh. Many of them are employed at various projects in Libya.
He hoped more contractors would visit Dhaka to hire more workers.
The two sides also discussed the issue of financing 10 community healthcare centres under the health ministry and financing from the TIKA for the development of vocational training.
The hosts also proposed to open a direct flight between Chittagong, the country's second largest city, and Istanbul, the largest city Turkey, of Turkish Airlines.
Muhith also said the potential to sign a Free Trade Agreement (FTA) with Turkey would require more consultation with the European.
"We have to overcome many hurdles," he said.
Celik said the EU rules do not allow Turkey to sign any bilateral trade with any other country as Ankara is trying hard for years to become a member of the 27-member economic and political bloc.
"And we will have to take step in line with the EU guidelines," he said, adding that the duty imposed on Bangladesh garment products is still lower than those of other countries.
He, however, said if any official request for the FTA is sent from Dhaka, Ankara would send a delegation to discuss the matter further with Bangladesh.
Muhith said the acceptance of the certification of Bangladesh Standards and Testing Institute is critical for enhancing the trade. "If we become a member of Islamic Standard Institute it will be easier."
He said Bangladesh could build strong cooperation on shipping and small and medium enterprises. There is also good scope for cooperation in energy and fertiliser.
He said agriculture could be a strong field for cooperation as Turkey, despite an industrialised economy, is still an agriculture-based country like Bangladesh.
During the meeting, Bangladesh sought withdrawal of the 17.5-percent duty on garment exports to Turkey as the tax measure has hit the country's sales to the European nation.
"The issue will have to be settled through further negotiation," said the finance minister.
Muhith also said he looks forward to receiving more queries from Turkish importers to buy medicines from Bangladesh.
Bangladeshi manufacturers now ship quality drugs to 83 countries in the Europe, Latin America, Asia and Africa.
Turkey will also give Bangladesh a $300 million credit for oil import, said the minister.
Prior to the press conference, the two ministers signed a Protocol of the Fourth Session of Joint Commission for Trade, Economic and Technical Cooperation highlighting 17 areas of cooperation.
The two sides agreed to hold the fifth JEC meeting in Turkey in a convenient time in 2014.