Bangladesh News Bangladesh Foreign Affairs

[Isa Khan]

https://twitter.com/i/web/status/1551156612823683072

Kenya has offered Bangladesh to take advantage of the African nation's vast farmland for food production as Bangladesh has developed good expertise and demonstrated immense success in the field.

It also showed interest in boosting trade and investment and exchanges of knowledge and training in agriculture, IT, women empowerment, and UN peacekeeping areas.

Officials of Bangladesh and Kenya said these after holding the first ever Foreign Office Consultation at the Foreign Service Academy today (July 24, 2022).

A 10-member delegation led by Kenya's Additional Secretary of the Ministry of Foreign Affairs MoiLemoshira joined consultations with the Ministry of Foreign Affairs in Dhaka. Bangladesh Foreign Ministry Secretary (East) MashfeeBinte Shams led the Bangladesh side.

Lemoshira mentioned that the consultations will help identify new areas of cooperation and strengthen the existing relations. Apart from diplomatic relations, the necessity of augmenting relations in trade and economic areas is increasingly felt.

Both sides agreed to develop cooperation in areas like agriculture including contract farming, technical exchanges in IT, education, youth cooperation, air connectivity, blue economy, cooperation between investment authorities and food security.

Secretary, Ambassador MashfeeBinte Shams briefed the delegation on the remarkable socio-economic achievements of Bangladesh in the recent years.

The Kenyan side expressed interest to initiate cooperation between the Foreign Service Academies of the two countries. Lemoshira underlined establishing joint economic cooperation and signing of joint trade agreements.

Both sides also pledged to continue cooperation at bilateral and multilateral platforms like the UN, Commonwealth, and Indian Ocean Rim Association.

Foreign Secretary Masud Bin Momen and Kenyan Head of delegation Lemoshsira signed MoUs on bilateral political consultations and cooperation between Foreign Service Academies.

The delegation will also join meetings with government agencies and apex chambers and visit export processing zones and manufacturing industries in Bangladesh.

Kenya offers vast farmland to Bangladesh for agriculture

Kenya has offered Bangladesh to take advantage of the African nation’s vast farmland for food production as Bangladesh has developed good expertise and demonstrated immense success in the field.

www.thedailystar.net

https://twitter.com/i/web/status/1551158170806263808

 

[Isa Khan]

https://twitter.com/i/web/status/1551435662435291136

The D-8 Chamber of Commerce and Industries, also known as D8 CCI, is mulling cross currency swap among the Developing-8 countries – Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkiye – to address foreign exchange reserve volatility and reduce pressure on the US dollar, D8 CCI President Sheikh Fazle Fahim said.

"Alternative trade financing can be used to address currency devaluation or volatility. To this end, barter [exchange of goods for other goods] and cross currency swap between D-8 countries can be a way. Indonesia has already started this [currency swap] with three countries," he said while talking to The Business Standard at the D8 CCI office in Dhaka on Sunday.

A currency swap is a transaction in which two parties exchange an equivalent amount of money with each other but in different currencies, according to Investopedia.

Fazle Fahim, also a former president of the country's apex trade body Federation of Bangladesh Chambers of Commerce and Industries, also talked about the upcoming Business Forum and Expo to be arranged by the D8 CCI in Dhaka on 26 July.

"There is a discussion over preferential trade agreements among the D-8 countries. With the continuous effort, initiatives will also be taken for the D-8 Comprehensive Economic Cooperation Agreement," the president added, saying that the existing trades among the countries can be increased manifold by reducing tariff and non-tariff barriers.

On the Business Forum, he said the value chain of mineral and energy, labour-intensive goods, light engineering, leather products and others will be discussed at the event.

"Besides, we will discuss technology-related collaboration."

Highlighting the issue of strengthening energy-related trade, Fazle Fahim said, Bangladesh can also import fuel oil from Nigeria if it gets competitive advantages. "Our task will be to work on addressing the non-tariff barriers."

The D8 CCI president said, currently the size of the economy of the D-8 countries is about $5 trillion and the amount of trade between the countries is $60-70 billion.

"It is possible to increase the trade to $500 billion by unlocking the further potentials, especially the potential of Halal trade."

Established in 1997, the D8, formally D-8 Organisation for Economic Cooperation, is going to celebrate its silver jubilee this year. Bangladesh Prime Minister Sheikh Hasina is currently the chair of the organisation. The D-8 CCI consists of the top business chambers of the eight countries.

D-8 trade body mulls cross currency swap

D-8 Chamber of Commerce and Industries President Sheikh Fazle Fahim disclosed this Sunday, while talking to TBS

www.tbsnews.net

The D8 countries are planning to implement the preferential trade agreement (PTA) by next year.

Foreign Minister Dr AK Abdul Momen revealed this on Sunday while briefing reporters on the upcoming D8 foreign ministers conference in the city.

The D-8 Organization for Economic Cooperation, also known as Developing-8, is an organization for development cooperation among the following countries: Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey.

Momen also stated that apart from this, trade, food security and the ongoing energy crisis will be discussed in this meeting.

Prime Minister Sheikh Hasina will inaugurate the meeting on July 27.

The foreign minister said that Bangladesh aims to expand its trade with the D8 countries.

Bangladesh’s trade with D8 countries increased to $10 billion.

Responding to a question he said as the world is facing a severe energy crisis, the upcoming meeting will devise ways and means to mitigate it.

Enhancing connectivity within the D8 countries will also be another focus for Bangladesh.

The minister added that during his recent visit to Malaysia and Indonesia, he held meetings with the foreign ministers of those countries where enhancing transportation and communication networks was emphasized.

Malaysia offered to increase the frequency of flights between Kuala Lumpur and Dhaka and Bangladesh has agreed to the proposal in principle.

Similarly, the Indonesian government also proposed to start flight operations between Dhaka and Jakarta.

The concerned officials are working on the possibility of these proposals, the minister added.

Momen also informed that the eight countries of the group will send their representatives to the meeting.

Iran will send its foreign minister, and other countries will send either state ministers or deputy ministers to the conference.

Raising food security will also be widely discussed in the D8 meeting as after the beginning of the Ukraine war, there is an apprehension of a prolonging food crisis in the world.

The meeting will also discuss a proposal to include Azerbaijan in the group.

The objectives of D-8 Organization for Economic Cooperation are to improve member states' position in the global economy, diversify and create new opportunities in trade relations, enhance participation in decision-making at international level, and improve standards of living.

D8 envisions PTA by 2023

Bangladesh’s trade with D8 countries increased to $10 billion

www.dhakatribune.com

The authorities have reduced duty to 10% for imports from Organisation of Islamic Cooperation (OIC), and D-8 Organization for Economic Cooperation (D-8) countries under two separate trade agreements.
Officials said the duty reductions will have an insignificant impact on revenue collection, but the country's export will benefit substantially from it.

A statutory regulatory order by the Finance Ministry on 20 July mentioned a duty cut for import of 478 types of products from the OIC countries.

But such imports have already been enjoying the reduced rate, as the new notification will be applicable for only 47 items with customs duty ranging from 15%-25%.

On 20 July, another separate statutory regulatory order was issued reducing import duty of 356 products from the D-8 countries. However, no new products will be subject to tariff reduction as these products already have lower import duty.

According to customs sources, Bangladesh cut the import duty of 478 products to 10% according to the 2003 OIC tariff base line under the Trade Preferential System among the Member States.

At that time, almost all of those products had duties above 10%. However, those rates fell over the years, as import duty of only 47 products remained 15%-25%.

"We will have to exempt around Tk6.5 lakh in duty for import from the OIC countries as per FY2021-22 estimate. This is insignificant compared to the overall benefits the country will get in export," a top customs officer at the revenue board told The Business Standard.

According to sources, import duty has already been reduced under the 2013 Preferential Trade Agreement Among D-8 Member States. Currently, the customs duty on the products is 10% or less.

As a result, even if the duty is reduced on paper, there will be no need for further duty adjustment, and there will be no negative impact on the revenue.

Apart from Bangladesh, other countries belonging to D-8 are Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey.

According to customs sources, Egypt and Pakistan have not implemented the import tariff yet.

Duty slashed for imports from OIC, D-8 countries

The duty reductions will have insignificant impact on revenue collection, but the country’s export will be benefited greatly

www.tbsnews.net

https://twitter.com/i/web/status/1551897098551017473

 

[Isa Khan]

Prime Minister Sheikh Hasina on Wednesday proposed the establishment of a D-8 Economic Zone in Bangladesh for investment by the member countries aimed at accelerating their collective economic growth.

The offer came in five-point proposals she made in her speech at the of the 20th D-8 Council of Ministers meeting at Dhaka's Hotel InterContinental, joining virtually from her official residence Ganobhaban.

The prime minister said Bangladesh is ready to provide space at its Special Economic Zones for investment of the member states.

"If it begins the process now, within the next decade, it will have a robust D-8 Economic Zone," she said.

D-8, also known as Developing-8, is an organization for development cooperation among Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkiye.

Established in 1997, the objectives of the forum are to improve member states' position in the global economy, diversify and create new opportunities in trade relations, enhance participation in decision-making at international level and improve standards of living.

PM Hasina said time has come for the 25-year-old forum to expand its focus also on implementation of Preferential Trade Agreement (PTA), increased trade, ICT, diversification of agriculture for attaining food security and finding sources of alternative energy.

She said implementation of the PTA is an important element for a successful D-8, which has large domestic markets.

Intra-D-8 trade will help accelerate its business prospects, she said, adding that the forum should aim at doubling the intra-D-8 trade from US$129 billion in the next decade.

On the immense prospects in ICT Hasina told the conference that the youths of the D-8 countries can be turned into a formidable workforce.

She said about 70 per cent of Bangladesh's population is under 40 years and it has 650,000 registered IT freelancers. This huge manpower can be used to create IT-based industry and involve the youth in various economic activities.

In her fourth proposal she said the D-8 should concentrate on diversified agriculture production to ensure food security and steady food supply.

Bangladesh, she said, is ready to share her best practices and experience with other D-8 member states. The D-8 should focus on agriculture production to become self-sufficient in food production within the next decade.

The PM also suggested that the D-8 member states be careful about energy usage and the necessity of alternate energy sources.

She proposed that the D-8 focuses on developing capacity by involving other countries who have expertise in alternate energy.

PM Hasina offers Bangladesh land for setting up D-8 economic zone

"If it begins the process now, within the next decade, it will have a robust D-8 Economic Zone," she said

www.tbsnews.net

Bangladesh and Nepal will likely hold the fourth meeting of the joint working group and joint steering committee in late August where the two sides plan to hold discussions on bilateral power trade and Bangladeshi investment in Nepal's hydropower sector.

The meeting of the joint working group is led by joint secretaries of the two countries while the joint steering committee meeting is led by secretaries on behalf of their respective governments, reports The Kathmandu Post.

"We have received a request for holding these meetings in late August," said Madhu Bhetuwal, spokesperson for Nepal's Ministry of Energy, Water Resources and Irrigation.

"The proposed date in August sounds good. But no definitive decision has been taken yet", he said.

He also informed that the meetings would include discussions on how to trade power between the two countries and attract Bangladeshi investment in the hydropower sector.

The meetings are set to take place at a time when India has become more flexible about sub-regional cooperation under a framework involving Bangladesh, Bhutan, India and Nepal, known as the BBIN.

As India lies between Nepal and Bangladesh, electricity trade between Nepal and Bangladesh cannot happen without Indian support.

During the third bilateral meeting of the joint working group and joint steering committee held in September last year, the two countries had agreed to develop a dedicated transmission line by taking India on board.

There, however, have not been any trilateral meetings regarding the issue, according to Bhetuwal.

"There is a realisation that a trilateral meeting should be held between Nepal, India and Bangladesh," he said. "But no side has proposed such a meeting so far."

But it is not only the Joint Vision Statement that talks about cooperation among BBIN countries, the southern neighbour has already expressed its support for the idea of transmission interconnectivity among BIMSTEC member countries.

BIMSTEC stands for the Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation.

During the third BIMSTEC Energy Ministers' Meeting held in Kathmandu in April, member countries approved the establishment of the BIMSTEC Grid Interconnection Coordination Committee to implement the provisions of the Memorandum of Understanding for the establishment of the BIMSTEC Grid Interconnection and its terms of reference.

Bangladesh has already agreed to buy 500MW from the planned 900MW Upper Karnali Hydropower Project. GMR, an Indian firm, has received the construction licence to develop the project.

Besides power trade, the two countries will also discuss developing two storage type hydropower projects—683MW Sunkoshi-3 Hydropower Project and [over 1100 MW] Khimti Shivalaya Hydropower Project—with Bangladeshi investment, according to Bhetuwal.

When the two sides held a virtual meeting in September last year, they had agreed to work together to explore the possibility of developing the Sunkoshi-3 Hydropower Project with Bangladeshi investment.

As per the Nepalese ministry's press statement last year, the Bangladeshi side was supposed to send a team to conduct field visits at the proposed site of the Sunkoshi-3 Hydropower Project by December last year. But the visit could not take place due to the Covid pandemic, according to Bhetuwal.

About two weeks ago, a joint team of Nepali officials and Bangladeshi representatives, including Bangladesh's ambassador to Nepal, visited the site of the Sunkoshi-3 Hydropower Project, which straddles Ramechhap and Kavrepalanchok districts.

Suwas Thapaliya, an engineer at the Department of Electricity Development, said Bangladeshi representatives were informed about the latest development regarding the project and that they also interacted with the local people.

Bangladesh, Nepal likely to hold meeting on power trade next month

Bangladesh and Nepal will likely hold the fourth meeting of the joint working group and joint steering committee in late August where the two sides plan to hold discussions on bilateral power trade and Bangladeshi investment in Nepal's hydropower sector. The meeting of the joint working group is...

www.tbsnews.net

Bangladesh wants easy and cheap cotton from Uzbekistan to boost trade relations between the two countries, Senior Commerce Secretary Tapan Kanti Ghosh said today.

Ghosh said he is scheduled to hold a meeting in Dhaka tomorrow with Uzbekistan's Deputy Prime Minister Jamshid Khodjaev to discuss bilateral trade issues.

Bangladesh wants Uzbek cotton and Uzbekistan wants Bangladeshi investment in this central Asian country, the secretary said.

Many Bangladeshis are currently going to Tashkent for holidaying and direct air connectivity between Dhaka and Tashkent will increase tourism business between the two countries, he said.

Moreover, Tashkent can be a good transit point like Istanbul and Dubai for visits to western countries from Bangladesh.

Bangladesh wants cheap cotton from Uzbekistan: Ghosh

Bangladesh wants easy and cheap cotton from Uzbekistan to boost trade relations between the two countries, Senior Commerce Secretary Tapan Kanti Ghosh said today.

www.thedailystar.net

 

[Isa Khan]

Uzbekistan has agreed to open an embassy in Dhaka alongside starting flights on Dhaka-Tashkent route.

The decisions were taken in a courtesy meeting held between Foreign Minister Dr AK Abdul Momen and Deputy Prime Minister of Uzbekistan Jamshid Khodzaev Friday (29 July), said a press release.

The Foreign Minister assured the Deputy Prime Minister of Uzbekistan that the government will provide all assistance in opening the Embassy of Uzbekistan in Dhaka.

Dr Momen emphasised communication between the two countries and insisted on the resumption of commercial flights between the two countries as before.

The two sides discussed code sharing method for operating flights between the two countries.

Both sides agreed to start Dhaka-Tashkent direct flights considering the consumer demand.

The Uzbek Deputy Prime Minister expressed optimism that if direct communication is established between Bangladesh's Chittagong and Iran's Chabahar ports to increase trade between Bangladesh and Uzbekistan, the cost of transporting goods will be reduced.

Dr Momen expressed interest in importing cotton from Uzbekistan while the Uzbek Deputy Prime Minister said that Bangladesh can import cotton from Uzbekistan and export it to other countries of the world through value addition.

Foreign Minister also expressed interest in importing fertilizer from Uzbekistan.

He called for steps to be taken so that Bangladeshi citizens can get visas easily.

Khodzaev said an e-visa system is being introduced for Bangladeshi citizens, through which they can travel to Uzbekistan for travel or business purposes.

Uzbekistan wants to open embassy in Dhaka

Uzbekistan has agreed to open an embassy in Dhaka alongside starting flights on Dhaka-Tashkent route. The decisions were taken in a courtesy meeting held between Foreign Minister Dr AK Abdul Momen and Deputy Prime Minister of Uzbekistan Jamshid Khodzaev Friday (29 July), said a press release...

www.tbsnews.net

https://twitter.com/i/web/status/1552336513245085696

 

[Isa Khan]

A Russian cargo ship arrived at Mongla port yesterday for the first time since the Russia-Ukraine war started in February this year.

Mongla Port Authority (MPA) Chairman Rear Admiral Mohammad Musa said the Russian-flagged MV Kamilla with around 3,328 tonnes of machinery for the Rooppur Nuclear Power Plant, docked at the port yesterday afternoon.

He said, "War is an internal matter of that country. Machinery or state-of-the-art equipment required for all ongoing mega projects in our country are imported from abroad. So, these products are coming to Mongla port as per the rules.

"Our trade relations with Russia are good even though there has been a break for some time due to the war between that country and Ukraine. From now on, products will arrive regularly by Russian ships."

Nuru and Sons owner, HM Dulal, a sub-contractor involved in importing machinery for Rooppur Nuclear Power Plant, told The Business Standard (TBS), "The ship left Temryuk port in Russia on 28 June with the goods for Rooppur nuclear power plant. There are 13 sailors on board.

"The arrival of Russian ships at Mongla port temporarily stopped due to the Russia-Ukraine war. The last Russian-flagged ship that arrived at the port before this one was MV Fesco Uliss, which docked here on 18 October 2021."

First Russian ship arrives at Mongla since start of Ukraine invasion

A Mongla port official said Russian cargo ships will arrive regularly in Bangladesh from now on

www.tbsnews.net

https://twitter.com/i/web/status/1551787897044467718

 

[Isa Khan]

• Food ministry started talks with Russia on wheat imports
• Export-import trade with Russia will gradually normalise
• But problem remains with payments for the exclusion of Russia's banks from Swift
• Bangladesh imports cotton, wheat, corn, mustard, lentils from Russia and Ukraine
• Around 3.5 tonnes out of 7 million tonnes of annual wheat demand used to come from these countries

---

The cloud of uncertainty that overhung Bangladesh's imports of food grains from Russia and Ukraine has begun to be dispelled as a Russian cargo ship arrived at Mongla port on Monday for the first time since the Ukraine war started in February this year.

Tapan Kanti Ghosh, senior secretary to the commerce ministry, said, "We hope export-import trade with Russia will gradually normalise."

The food ministry has officially started talks with Moscow on wheat imports from the country. Private trade will also resume in the coming days as predicted by different international media, he noted.

Payments, however, will still remain an obstacle to the resumption of trade with both the countries as major Russian banks have been cut off from the international financial messaging system SWIFT.

Bangladesh used to import cotton, wheat, corn, mustard and lentils from Russia and Ukraine. Out of the country's total 7 million tonnes of annual wheat demand, around 3.5 million tonnes used to come from these countries.

But the imports of these goods have remained suspended since February 24, when Russia was excluded from the SWIFT system.

Nevertheless, some counties, such as India and China, kept importing Russian oil through alternative banking channels and currencies.

Bangladesh authorities also have taken efforts to resume the trade to meet the grain demand at home.

The US embassy in Dhaka, recently in a fact sheet said there is no restriction on the production, sale and transportation of the Russian food products, including fertilisers.

It also said there were no restrictions on Russia's food and fertiliser trade despite other restrictions due to the attack on Ukraine.

In the meantime, a Russian cargo ship with around 3,328 tonnes of machinery for the Rooppur Nuclear Power Plant on Monday arrived at Mongla port.

Mongla Port Authority Chairman Rear Admiral Mohammad Musa said, "War is an internal matter of that country. Machinery or state-of-the-art equipment required for all ongoing mega projects in our country are imported from abroad. So, these products are coming to Mongla port as per the rules."

"Our trade relations with Russia are good even though there has been a break for some time due to the war. From now on, products will arrive regularly on Russian ships."

Nuru and Sons owner, HM Dulal, a sub-contractor involved in importing machinery for Rooppur Nuclear Power Plant, told The Business Standard, "The arrival of Russian ships at Mongla port temporarily stopped due to the Russia-Ukraine war. The last Russian-flagged ship that arrived at the port before this one was MV Fesco Uliss, which docked here on 18 October 2021."

Rooppur Nuclear Power Plant authorities, however, said the arrival of the latest ship has no relation with the war and western sections of Russia.

Dr Md Shawkat Akbar, project director at Rooppur Nuclear Power Project, said according to the schedule of shipment, Joint-Stock Company Atomstroyexport (JSC ASE), a key foreign trade engineering company of State Corporation Rosatom, has sent this equipment.

Some equipment is being shipped through airways and some through waterways. But there was no shipment scheduled since the war began, said Shawkat Akbar.

Food grains importing authorities, the food ministry, said the import from Russia depends on the currency issue. If the mode of payment is settled, the import will be easier.

Food Minister Sadhan Chandra Majumder said, "The western sanctions do not include food items. However, it would be known once we start importing the items."

Uncertainty over trade with Russia starts to go

Food ministry started talks with Russia on wheat imports Export-import trade with Russia will gradually normalise But problem remains with payments for the exclusion of Russia's banks from Swift Bangladesh imports cotton, wheat, corn, mustard, lentils from Russia and Ukraine Around 3.5 tonnes...

www.tbsnews.net

The resumption of grain exports from Ukraine and Bangladesh paying Russia an outstanding import bill have now cleared the way for procurement of wheat and other goods from both the countries.

But complexities centring import payments to Moscow persist with its banks still disconnected from SWIFT, the world's dominant financial messaging system.

On the other hand, when it comes to importing Ukrainian grains, there is no such bar – it is possible to bring in grains from Ukraine through both government and private initiatives, according to food ministry officials and importers.

The resumption of Ukraine grain shipments is a good opportunity for Bangladesh, Food Secretary Md Ismiel Hossain told The Business Standard.

"We will resume imports from Ukraine after completing necessary discussions as soon as possible," he noted.

As the first ship carrying Ukrainian corn safely left the Black Sea port on Monday since the war, brightening hopes and unblocking a major food corridor, options are now wide open for Bangladesh to book Ukrainian wheat as well.

Ukraine and Russia, known as global food baskets, together are the biggest sources for Bangladesh. If the two-week trial time goes well, caravans of ships stuck in the Black Sea with millions of tonnes of food grains are expected to begin moving towards global destinations.

Earlier, on 22 July, Russia and Ukraine signed a grain deal brokered by Turkey and the United Nations to allow exports of grain from blockaded Ukrainian ports amid a global food crisis. The deal – which took two months to reach – is set to last for 120 days.

In the meantime, Bangladesh has inched one step closer to its sourcing of wheat from Russia as it paid off an outstanding import bill of Tk12 crore, which had remained stuck over legal complexities, to the country on Monday through Sonali Bank, Food Secretary Md Ismiel Hossain noted.

"As the payment has been cleared, we can now initiate a fresh negotiation over striking a new deal for importing wheat," he pointed out, adding that they will also have talks over determining a payment system.

Bangladesh is also trying to procure wheat from Belarus, Kazakhstan, Serbia, Canada and India, he added.

Asked about the payment method, Subhash Chandra Das, chief financial officer at Sonali Bank, could not confirm through which currency the payment was made.

Meanwhile, Russia offered Bangladesh 3 lakh tonnes of wheat in June. During a visit to TBS last month, Russia's acting ambassador to Bangladesh Ekaterina A Semenova said talks were "nearing completion" on the supply of 2 lakh tonnes of Russian grains to Bangladesh "very soon."

She, however, mentioned some technical issues in the process, including the problem with the local banks opening letters of credit due to sanctions imposed by the West.

Food Minister Sadhan Chandra Majumder said talks were on over removing complexities regarding payments for Russian goods.

No wheat shipments have come to Bangladesh since the Russia-Ukraine began in February this year.

In FY21, Bangladesh's wheat procured from Ukraine stood at 23 lakh tonnes, which was a little over 17% of its total imports, while its sourcing from Russia accounted for close to 21%. And, 24% of its wheat supplies came from India in the fiscal year.

But one after another, imports from all the three sources were closed after the outbreak of the Russia-Ukraine war, resulting in sharp spikes in prices of flour and baked food in the local market.

India's sudden wheat export ban on 13 May raised concerns about supply of wheat to Bangladesh, which relied more on the neighbouring country after supplies from Russia and Ukraine stopped since the war.

India, however, kept the government-to-government purchase window open, paving the way for shipping some 1.5 lakh tonnes to Bangladesh till the end of June since the ban, Indian food secretary had said.

Now, things are getting better as global prices of wheat have almost plunged back to pre-war levels.

The price of a widely traded type of wheat that started the year about $7.70 per bushel jumped to $13 in the immediate aftermath of Russia's invasion of Ukraine in late February, according to futures contracts traded in Chicago, a global hub for the commodity.

The price mostly stayed in double digits until mid-June, when it began to fall. On Monday, wheat traded at a little more than $8 a bushel.

In this situation, importers say they cannot benefit from a fall in global prices because their sourcing from major markets has remained stopped and taka continues to lose its value against dollars.

According to food ministry sources, the government is now importing 1 lakh tonnes of wheat in two shipments, each having 50,000 tonnes, through two Singapore-based companies. The companies will first bring in wheat from Argentina and then will supply to Bangladesh. That is why, Bangladesh has to pay high prices - $11.9 per bushel (25 kg).

But now, it is good news that Ukraine has resumed the grain imports, which will help Bangladesh get benefits from price drops, importers say.

Md Shafiul Ather Taslim, director at Finance and Operation at TK Group, told TBS, "The major sources of wheat imports are now reopening. If no problem arises, we will be able to open LCs soon for wheat imports from Ukraine."

The people concerned suggest that the government take immediate import initiatives both from government and private levels to cash in on falling wheat prices in the international market.

Bangladesh to resume talks for Ukrainian wheat import

Clearing import payment to Russia also rekindles hopes for wheat sourcing from there

www.tbsnews.net

 

[Isa Khan]

Prime Minister Sheikh Hasina today (August 5, 2022) reiterated that Nepal can take the advantage of using Bangladesh's Mongla and Chattogram seaports.

She said this when a visiting Nepalese parliamentary delegation, headed by Pabitra Niruola Kharel, chairperson of International Relations Committee at House of Representatives of Federal Parliament of Nepal, paid a courtesy call on her at her official residence Gono Bhaban.

The premier said Bangladesh is developing Saidpur airport as a regional airport which the neighbouring countries can use, said a press release of the PMO Press Wing.

She said her government attaches great importance to maintaining good relations with neighbouring countries, including Nepal.

Hasina expressed her gratitude to the leadership and the people of Nepal for supporting Bangladesh during its Liberation War in 1971.

She was happy to know that the delegation visited Bangabandhu Memorial Museum at Dhanmondi and Bangladesh Parliament.

The Nepalese delegation stressed the two countries may further consolidate their cooperation in sectors like power, hydroelectricity, tourism, education, ICT, connectivity, and people to people contact.

They noted with great satisfaction that Nepal and Bangladesh have been enjoying cordial relations over the years.

They emphasised high-level visits on a regular basis to strengthen the friendly ties.

The visiting team appreciated PM Hasina for her visionary leadership and the recent socio-economic development, which they termed as very impressive.

At the outset, the Nepalese delegation thanked the government for arranging an excellent programme for them.

The meeting ended with a goodwill gesture of handing over gifts from both sides.

Among other Nepalese delegation members, Chandtara Kumari MP, Dr Deepak Prakash Bhatt MP, Dev Prasad Timalsena MP, Lila Devi Sitaula MP, Narad Muni Rana MP, and Sarala Kumari Yadav MP, were present in the meeting.

PM offers Nepal to use Chattogram-Mongla ports

Prime Minister Sheikh Hasina today (August 5, 2022) reiterated that Nepal can take the advantage of using Bangladesh's Mongla and Chattogram seaports.

www.thedailystar.net

A much-needed move to sign free trade agreements (FTAs) and preferential trade agreements (PTAs) with potential countries and economic blocs is not moving as desired by Bangladesh, mainly due to lack of responses.

Although the government had taken initiatives to sign such deals to boost bilateral trade with other countries, no significant progress was made, according to sources.

Bangladesh is on course to graduate from its least-developed country (LDC) status in 2026. Many developed countries will not continue duty-free facility in the post-LDC era, said an official.

"Feasibility study comes first. Then we can decide on a deal. In fact, we'll sign FTA/PTA with a country only when it's financially and economically viable for our country," the official further said.

Bilateral free-trade or preferential-trade pact is a matter of negotiations between two countries. No country does come forward to sign a deal if it goes against its interests.

A commerce ministry official admitted that the process of penning bilateral FTAs with some countries was progressing slowly.

The aims and objectives of FTAs are to attain zero-tariff facility between two signatories and also reduce trade barriers.

Signing FTAs with some countries may not be feasible for Bangladesh as it will cause a heavy revenue loss to it, according to trade officials.

The process of signing FTAs with some countries is currently at the negotiating stage.

Discussions are ongoing with Indonesia, Eurasian Economic Union (EAEU), Thailand, Malaysia, China, Turkey, APTA, ASEAN, Australia, GCC, Japan, the Philippines, South Korea, MERCOSUR and Singapore.

It has already conducted feasibility studies on possible FTA/PTAs with Australia, Thailand, Malaysia, China and the ASEAN bloc.

India, China, Australia and Singapore are potential partners of Bangladesh. So, it is trying to sign proposed deals with them within a short span of time.

The government also prioritizes Cepa, RCEP and Bimstec for the purpose, according to another official.

Accordingly, Bangladesh embassy in Moscow sent a formal request for initiation to sign an FTA with EAEU on January 13.

But Dhaka is yet to receive any response from the commission.

Bangladesh and Malaysia have agreed to start similar negotiations as they have nominated a chief negotiator regarding the issue.

A memorandum of understanding (MoU) was signed during the Chinese president's Dhaka visit in October 2016 for doing a joint feasibility study on an FTA.

A term of reference was finalized and Turkey indicated the signing of a PTA. But Turkey is currently busy negotiating its entry into the EU.

Dhaka already sent a letter to the ASEAN secretariat regarding a joint feasibility study for an FTA.

No move is underway to start negotiations with Australia. Bangladesh will organize a validation workshop to consider an FTA with Australia.

Bangladesh and Indonesia have already exchanged the lists of products. A PTA was due in the first half of 2021, but it failed to make way through the pandemic.

Recently, Jakarta has completed correlation table from HS 2017 to HS 2022 and requested Dhaka to reciprocate for carrying forward the process smoothly.

The Commerce Ministry has now decided to open CEPA talks with India soon with an eye to retaining in the new pact the facilities it enjoys under the SAFTA deal.

Slow response for trade agreements with Bangladesh

Although the government had taken initiatives to sign such deals to boost bilateral trade with other countries, no significant progress was made

www.dhakatribune.com

 

[Isa Khan]

Bangladesh granted duty-free access to 16 more products from Bhutan based on an earlier agreement between the two countries.

The Internal Resource Division (IRD) of the finance ministry issued an order in this regard on 4 August and it was published on Monday.

In December 2020, Bangladesh granted duty-free access to 34 products of Bhutan under a preferential trade agreement (PTA).

According to the order, no customs duty or tax will be imposed on the import of 16 products from Bhutan, including milk, natural honey, wheat or meslin flour, jams, fruit jellies, marmalade, cement clinker, Portland cement, soap, particle board of wood, mineral water, aerated water, wheat bran and wooden furniture.

However, relevant sources of the National Board of Revenue (NBR) said Bangladesh does not import much of the products in question from Bhutan.

As a result, even if the duty is exempted, the government will not lose much revenue.

According to the terms of Bangladesh's PTA with the country, 100 products of Bangladesh will get duty-free benefits in Bhutan and 34 products of Bhutan to Bangladesh.

However, since 2010, Bangladesh has provided duty-free market facilities to Bhutan for 18 products. And 90 products of Bangladesh are getting duty free market facility in Bhutan.

The terms of the agreement have been fulfilled by granting duty-free facilities to the 16 new products.

Bangladesh mainly exports manufactured garments, food items, plastics, medicines, home furnishings and electrical goods to Bhutan. It imports vegetables and fruits, minerals, construction materials, boulder stones and chemicals from Bhutan.

Bangladesh gives duty-free access to 16 more Bhutanese products

Bangladesh granted duty-free access to 16 more products from Bhutan based on an earlier agreement between the two countries. The Internal Resource Division (IRD) of the finance ministry issued an order in this regard on 4 August and it was published on Monday. In December 2020, Bangladesh...

www.tbsnews.net

Bangladesh Army greeted the Qatar Armed forces with 10 spotted deer as gifts and received 18 Arabian horses, in turn.

The exchange of gifts took place during a ceremony organised on the tarmac of Hazrat Shahjalal International Airport, Dhaka on Monday (8 August), said a press release.

Major General Md Khaled-al-Mamun, military secretary of Bangladesh Army, offered the gifts to Brigadier General Abdulaziz Al-Sulaiti, who received them on behalf of his military.

The horses sent by Qatar arrived at the airport around 5:30pm on a special flight.

Several military officials from the armed forces of both countries and media personnel attended the event.

Earlier, on 6-8 June, a Qatar delegation, led by its armed forces chief Lieutenant General (Pilot) Salem Hamad Al-Akil Al-Nabet, arrived in Dhaka on a three-day visit in response to an invitation by Chief of Army Staff General SM Shafiuddin Ahmed.

Salem Hamad paid the courtesy call on Shafiuddin Ahmed and discussed potential areas of cooperation between the two friendly countries.

He also expressed interest in training exchanges between the armed forces of the two countries.

Bangladesh Army and Qatar Armed Forces exchange gifts

Bangladesh Army greeted the Qatar Armed forces with 10 spotted deer as gifts and received 18 Arabian horses, in turn. The exchange of gifts took place during a ceremony organised on the tarmac of Hazrat Shahjalal International Airport, Dhaka on Monday (8 August), said a press release. Major...

www.tbsnews.net

 

[Isa Khan]

Bangladesh will import three lakh tonnes of wheat from Russia, said Food Minister Sadhan Chandra Majumder.

The decision came at a meeting between Russia's Ambassador to Bangladesh Alexander Vikentevich Mantitsky and the food minister at the ministry on Thursday (11 August).

Ambassador Alexander Vikentevich Mantitsky expressed his country's interest in exporting necessary wheat to Bangladesh during the meeting. The ministry later issued a press release with the import announcement today.

The Russian ambassador also referred to trade and investment opportunities between the two countries during the meeting.

He said Russia is interested in playing a role in achieving food security in Bangladesh.

Sadhan Chandra Majumder mentioned the warm relations between Bangladesh and Russia which he said is gradually expanding in various fields including trade and investment.

The food minister thanked Russia for its interest in wheat exports to Bangladesh and said it would play an important role in improving bilateral relations.

Bangladesh has not been able to import any wheat from Russia since the latter's special military operation in Ukraine due to payment complications.

Before the war, about 20% of the country's demand for wheat was met by imports from Russia every year. Bangladesh has a demand of 70,000 tonnes of wheat every year.

Russia to export 3 lakh tonnes of wheat to Bangladesh

Russia will export three lakh tonnes of wheat to Bangladesh. The decision was made during a meeting between Russian Ambassador to Bangladesh, Alexander Vikentevich Mantitsky, and Food Minister Sadhan Chandra Mazumdar, at the Ministry of Food, on Thursday (11 August). Alexander Vikentevich...

www.tbsnews.net

Total trade volume between Iraq and Bangladesh has almost quadrupled in the past two years.

This information was released on Tuesday (9 August) at a seminar titled "Bangladesh - A Hub for Trade and Investment" in Erbil, the capital of Iraq's Kurdistan Regional Government, organised by the Bangladesh Embassy in Iraq.

About 80% of the dates in the Bangladeshi market come from Iraq, which has increased to about $26 million in the past year from $7 million in the 2019-20 fiscal year.

Besides, the import of bitumen and petrochemicals in large quantities from Iraq started this year. On the other hand, tobacco, electronics and food items have started to be exported from Bangladesh for the first time this year, along with medicines and ready-made garments.

The first secretary of the embassy, Abu Saleh Mohammad Imran, presented the main article in the seminar chaired by the Ambassador of Bangladesh to Iraq, Md Fazlul Bari.

During the open discussion phase of the seminar, the ambassador answered various questions about investment and import-export in Bangladesh.

The chief guest of the programme was the provincial governor of Erbil, Umed Khoshner.

Erbil Chamber of Commerce and Industries President Dara Jalil Khair and other local business leaders addressed the seminar.

They said that the seminar helped them to get a clear understanding of Bangladesh, its investment environment and export products.

Bangladesh-Iraq trade grows four-fold

Total trade volume between Iraq and Bangladesh has almost quadrupled in the past two years. This information was released on Tuesday (9 August) at a seminar titled "Bangladesh - A Hub for Trade and Investment" in Erbil, the capital of Iraq's Kurdistan Regional Government, organised by the...

www.tbsnews.net

A high-profile delegation from oil-rich Saudi Arabia will soon visit Bangladesh to discuss cooperation in the energy sector, said the country's ambassador Essa Yussef Essa Alduhailan on Thursday.

Talking to reporters at the Saudi Embassy here, the envoy said his country is one of the key players in balancing oil market and Riyadh and Dhaka are helping each other on many fronts.

The Kingdom of Saudi Arabia (KSA) finds Bangladesh as a "top priority country" and is interested in a long-term strategic plan to contribute to the economic growth of the country.

The Saudi ambassador said the soon-to-visit delegation will also discuss with Bangladesh the investment issues.

In response to the letter of the Custodian of Two Holy Mosques, King Salman bin Abdulaziz Al-Saud, Bangladesh President Abdul Hamid on Wednesday conveyed his support to Saudi Arabia for hosting the World Expo 2030 in Riyadh.

"We have excellent relations. We always receive full solidarity," he said, thanking Bangladesh for the support.

The KSA is hosting Expo 2030 in Riyadh and Bangladesh's support to Saudi Arabia reflects the absolute growing relationship between the two brotherly Muslim countries, said the Saudi ambassador.

Bangladesh Ambassador to Saudi Arabia Mohammad Javed Patwary handed over the original copy of the president's letter addressed to the Saudi king to Saudi Foreign Minister Faisal bin Farhan during a meeting at the latter's office.

The Saudi foreign minister expressed his satisfaction with the relationship between Bangladesh and his country and was looking forward to deepening the ties.

The two sides also discussed the ongoing cooperation between them and issues of mutual interest.

Saudi delegation to visit, discuss energy cooperation: Ambassador

Saudi Arabia is now issuing 8,000 visas per day from the Bangladesh embassy, said the Saudi ambassador

www.tbsnews.net

 

[Isa Khan]

After two months of suspension following the fatal fire and explosion at BM Container Depot in Chattogram, the Port of Singapore has resumed accepting containers full of hydrogen peroxide at its terminals.

PSA Corporation Limited, which operates container terminals at the Port of Singapore, issued a notification in this regard on Wednesday.

Most of the consignments of hydrogen peroxide, via the Chattogram Port, are exported to Vietnam, India, Pakistan, Indonesia, Sri Lanka and the United Arab Emirates (UAE).

The Port of Singapore is very vital for Bangladesh as the main hydrogen peroxide export destinations – including locations in Europe and America – maintain Singapore as their primary transhipment point.

"This circular supersedes HCSD/CC/L2205 on hydrogen peroxide restriction, with immediate effect. Following the restriction on 9 Jun 2022, the inventory level for hydrogen peroxide has been closely monitored and kept within safe levels.

Acceptance of hydrogen peroxide (UN No.: 2014, 2015, 3149) has resumed for all shipments," the PSA Corporation notification reads.

Speaking with The Business Standard, Chairman of Bangladesh Shipping Agents' Association (BSAA) Syed Mohammad Arif said, "The embargo issued in June resulted in a lot of complications.

"We have instructed shipping agents to ensure proper transportation and storage of hydrogen peroxide in compliance with all national and international regulations."

Earlier, 46 people, including fire service personnel, were killed and more than 200 injured in a fire that broke out at the BM Container Depot in Sitakunda, Chattogram on 4 June. The source of the explosion was hydrogen peroxide in the depot.

Then on 9 June, PSA issued a notification stating that storage of hydrogen peroxide at the port had gone beyond the limit and so it was halting the transhipment through the port for the time being.

According to The Observatory of Economic Complexity (OEC), Bangladesh exported hydrogen peroxide worth $13.9 million in 2020. The country ranks 17th in the export of the chemical worldwide which is mainly used in the bleaching and disinfection process of the textile, paper and pulp industry.

It is the 89th most exported product in the country which goes to countries including India, Nepal, Malaysia, Pakistan and Sri Lanka.

Bangladesh also ranks 65th in terms of importing hydrogen peroxide from other countries. In 2020, the country imported this chemical worth $656,000 mostly from Thailand, Japan, Netherlands, South Korea and India.

Port of Singapore resumes accepting hydrogen peroxide from Bangladesh

After two months of suspension following the fatal fire and explosion at BM Container Depot in Chattogram, the Port of Singapore has resumed accepting containers full of hydrogen peroxide at its terminals. PSA Corporation Limited, which operates container terminals at the Port of Singapore...

www.tbsnews.net

The connectivity between Saidpur Airport and the nearest Nepalese airport is in limbo due to funding problems, despite several requests from the landlocked Himalayan nation and promises made by the Bangladeshi government.

The Civil Aviation Authority, Bangladesh said that they were not expanding the existing runway of Saidpur Airport now due to a fund crunch following the Covid pandemic as over Tk 5,000 crore would be required just for land acquisition and runway construction.

‘There is a real commitment to building a regional airport at Saidpur. We have taken our work to this end. But unfortunately, it needs around Tk 5,000 crore just for the land requisition and expansion-related works and it is not getting priority in the post-Covid financial situation,’ said CAAB chairman Air Vice-Marshal Muhammad Mafidur Rahman.

He, however, said that the modernisation work at the airport continued with the available budget of CAAB.

The Saidpur airport officials said that no development work could take place at the airport other than some modernisation of the terminal building as the flight frequency had increased significantly in the northern region in the past few years.

An airport official in Saidpur said that the runway needed to be expanded from the existing 6,000 feet to 12,000 feet to operate wide-body aircraft and make the airport a regional hub.

The government has recently expanded the terminal’s passenger handling capacity from 310 to 670 at the expense of Tk 312 crore.

Novoair and US-Bangla Airlines are presently operating 12 flights to and from Saidpur Airport each daily, while Biman Bangladesh Airlines operates six to eight flights.

The Bangladesh government has in recent years repeatedly announced that it would upgrade the domestic airport to a regional airport to facilitate neighbours, especially landlocked Nepal.

Kathmandu also proposed to Dhaka that regional air connectivity be established from Bhadrapur to Saidpur and Biratnagar to Saidpur, with a visa on arrival in Bangladesh.

Sohail Majid, chief operations officer of online travel agency ShareTrip and an aviation market analyst, said that the Biratnagar-Saidpur route would benefit the aviation market in Bangladesh and Nepal because it would take only 30 minutes to travel, lowering travel costs.

He stated that bilateral trade would be multiplied and that Nepalese students and business people from both countries would also benefit.

On August 5, prime minister Sheikh Hasina proposed that Nepal use the seaports of Mongla and Chattogram in addition to Saidpur airport for mutual benefits when a parliamentary delegation from Nepal paid a courtesy call on her at Ganabhaban in Dhaka.

Mentioning that Bangladesh is developing Saidpur Airport as a regional airport, the prime minister said, ‘Neighbouring countries, including Nepal, can use the airport’, according to the Bangladesh Sangbagh Sanstha.

In a bilateral meeting between Bangladesh foreign minister AK Abdul Momen and the then Nepalese foreign minister Pradeep Kumar Gyawali at state guesthouse Meghna in Dhaka on February 18, 2020, Dhaka agreed to allow Kathmandu to use the Saidpur Airport as part of strengthening trade and connectivity between the two neighbouring countries.

The airport, situated on 136.59 acres of land, began its operation as a domestic airport in 1979. CAAB is in charge of the airport, which is two kilometres from Saidpur town and 350 kilometres from Dhaka.

Connectivity with Nepal in limbo

The connectivity between Saidpur Airport and the nearest Nepalese airport is in limbo due to funding problems, despite several requests from the landlocked Himalayan nation...

www.newagebd.net

https://twitter.com/i/web/status/1554147307117060097

 

[Isa Khan]

Bangladesh and Switzerland are in touch to develop a mechanism for exchange of information to avoid any "misunderstanding" and "confusion" between the two sides.

Foreign Secretary Masud Bin Momen on Tuesday said they are in touch with the Swiss Embassy in Dhaka and Switzerland's administrative capital Bern as there is a proposal to that end from the Swiss side.

The decision to develop such a mechanism came amid confusions over deposits of Bangladeshi money in the Swiss banks and whether Bangladesh has sought information from the Swiss authorities or not.

The Foreign Secretary said the government wants to make sure that there is no Illicit transfer of funds.

Responding to a question, he said the mechanism is primarily for the exchange of information.

Masud said they will sit with the relevant stakeholders to end any misunderstanding because neither side might have full information on the deposits of illegal money in Swiss banks.

Earlier, Foreign Minister AK Abdul Momen said Bangladesh sought information on the deposits of Bangladeshi money in the Swiss banks but the Swiss side did not respond to the query.

Momen said this after his conversation on the issue with Bangladesh Bank governor Abdur Rouf Talukder and Finance Secretary Fatima Yasmin recently.

The foreign minister said he advised the governor and the finance ministry to come up with the statements as confusion arose following some media reports quoting Ambassador of Switzerland to Bangladesh Nathalie Chuard.

Momen said it is not true that Bangladesh did not seek information from Switzerland.

The Swiss envoy at the DCAB Talk last week said any estimate on deposits of Bangladeshi money in the Swiss banks is "purely speculative" and no conclusion can be drawn on the basis of reports.

"Switzerland is not a safe haven for corrupt money," she said adding "When it comes to the Bangladeshi money deposited in the Swiss banks - the deposits meant by individuals ...represent only one aspect of various sources of public and private funds."

Bangladeshi media outlets reported that funds parked by Bangladeshi nationals and entities in all the Swiss banks swelled by 54 per cent to around CHF (Swiss Franc) 871 million (Tk 83.18 billion) in the last calendar year. The amount was around CHF 563 million in 2020.

Responding to a question on information exchange on the issue, she said Switzerland is really committed to implementing international standards.

In accordance with these international standards they can have some specific regulations and agreements also with the country to exchange this type of information, she said.

"So that is something should be developed," said the ambassador, adding that they have been providing to the government all the information regarding how to reach an agreement on these matters but no request has been submitted regarding any particular funding.

Bangladesh, Switzerland to discuss ways to develop mechanism on info exchange

Earlier, Foreign Minister AK Abdul Momen said Bangladesh sought information on the deposits of Bangladeshi money in the Swiss banks but the Swiss side did not respond to the query

www.tbsnews.net

https://twitter.com/i/web/status/1559130445463560192

 

[Isa Khan]

All Bangladeshi exports will continue to get duty-free access to the United Kingdom until 2026 when the country will make the status graduation from a least developed to a developing nation.

After the graduation, 98 per cent of Bangladesh's products will be eligible for the benefit, according to a new trading scheme announced by the UK on Tuesday.

Garments, which make up 82 per cent of Bangladesh's total annual exports, are among the items set to enjoy the zero-duty entry benefit after the graduation, said the British high commission in Dhaka yesterday.

Analysts view it to be more beneficial for Bangladesh compared to a new scheme under consideration of the European Union.

The disclosure comes as the UK, the third biggest export destination for Bangladesh, announced a new scheme, "Developing Countries Trading Scheme (DCTS)", in place of the existing Generalised Scheme of Preferences (GSP) launched in January last year.

The UK largely replicated the European Union's GSP that provides duty-free, quota-free entry to all good except arms from the least developed countries (LDCs).

Bangladesh enjoys a trade surplus with the UK as its exports more goods than what it imports from there.

Though the latest import data from the UK is yet to be available, the Export Promotion Bureau says Bangladesh exported goods worth $4.8 billion in fiscal year 2021-22 to the island nation in northwestern Europe.

Under the DCTS, the UK is going to introduce a new list of "more liberal Product Specific Rules" (PSRs) designed solely for the LDCs.

It said the LDCs already receive duty-free and quota-free access for all their products, other than arms and ammunition.

Improvements for the LDCs are being enabled in the DCTS through the simplification of the Rules of Origins (RoOs) by simplifying and liberalising the PSRs.

This will make it easier for the LDCs to produce goods using components from other countries without losing duty-free status.

The UK, however, said the DCTS retains powers to suspend a country on grounds of human and labour rights violations and broadens these powers to include violations in relation to anti-corruption, climate change and environment conventions.

The new scheme makes it easier for the LDCs to participate in regional and global supply chains serving the UK, according to a press release.

The new scheme, which will come into effect in early 2023, offers developing countries one of the most generous sets of trading preferences of any country in the world, said the UK's Department for International Trade.

It said the DCTS was a major milestone in growing free and fair trade with developing nations and applies to 65 countries, offering lower tariffs and simpler rules of origin requirements for exporting to the UK.

"The scheme helps countries to diversify their exports and grow their economies, while British households and businesses benefit from lower prices and more choice," said the statement.

"This new scheme demonstrates the UK's commitment to strengthening a long-term and mutually beneficial economic relationship with Bangladesh," said the British high commission.

British High Commissioner to Bangladesh Robert Chatterton Dickson said the DCTS would harness the power of trade and the private sector to enable developing countries like Bangladesh to grow and prosper.

"We look forward to increasing trade in both directions as an increasingly prosperous Bangladesh buys more high-quality UK goods and services," he said.

Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue (CPD), said the introduction of the DCTS formally dispels uncertainty over whether Bangladesh would continue to get duty benefits to the UK market after Brexit.

"From my preliminary assessment, it seems to be a very good scheme. They have made it quite development-friendly," he said.

Some suspension conditions are similar to the EU's GSP Plus scheme that wants improvements in the rights situation, said Rahman.

However, the UK's requirement related to RoOs is more liberal, he said.

The EU's new GSP scheme seeks to impose a threshold, that products under a chapter of "Harmonised Tariff Schedule" will lose duty benefit if total shipments from a country exceed 6 per cent of the bloc's total imports pertaining to the chapter, he said.

The new 10-year GSP scheme of the EU is going to be effective from 2024 onwards.

In case of the UK's DCTS, product specific rules have been introduced which will be beneficial for Bangladesh, he said.

MA Razzaque, research director of the Policy Research Institute of Bangladesh, said because of the inclusion of various generous features, the DCTS would greatly help Bangladesh make a smooth graduation.

First of all, as had been communicated earlier, the UK will continue to provide a three-year additional transition period for the graduating LDCs, enabling Bangladesh to retain its current level of market access until 2029.

After the graduation, as per the provisions specified in the DCTS, Bangladesh will be considered one of the "lower-middle income vulnerable country" and thereby qualifying for a "DCTS Enhanced Preferences".

A country's vulnerability will be measured by a simple assessment of its share of imports to the UK under 7 of the largest GSP categories.

If those imports from a GSP beneficiary represent more than 75 per cent of its total shipments to the UK, the country will be determined as economically vulnerable, he said.

Given Bangladesh's current reliance on apparel items alone, Bangladesh will qualify for the "DCTS Enhanced Preferences".

"What is, however, worth noting is that the UK will allow all economically vulnerable lower-middle income countries access DCTS Enhanced Preferences by removing the requirement for countries to ratify and effectively implement certain international conventions," said Razzaque.

"This is a departure from the EU provisions of ratification and implementation of as many as 32 international conventions as a precondition for GSP+ market access," he said.

He said previously under the EU GSP+ scheme and the equivalent UK Enhanced Framework, a beneficiary country would receive duty-free access to 66 per cent of tariff lines.

But the UK, under its new DCTS, will either lower or remove tariffs on an additional 156 products, he added.

"Most importantly, while under the EU draft GSP proposal for 2024-34, Bangladesh's apparel products after LDC graduation would almost certainly be subject to safeguard measures, making those items ineligible for duty-free market access, the UK DCTS does not include any such provision," said Razzaque.

"Therefore, even after the LDC graduation, Bangladesh's exports of garment items to the UK will continue to benefit from duty-free market access," he said.

New UK trade scheme to ease Bangladesh’s LDC graduation

All Bangladeshi exports will continue to get duty-free access to the United Kingdom until 2026 when the country will make the status graduation from a least developed to a developing nation.

www.thedailystar.net

Russian Deputy Defence Minister Colonel-General Alexander Fomin met with Major General Tarique Ahmed Siddique, National Security Adviser to the Prime Minister of the People's Republic of Bangladesh, on the margins of the 10th Moscow Conference on International Security.

"This year is a special year. This is the year of the 50th anniversary of the establishment of diplomatic relations between our states. Over this period, a unique experience of working together, based on many years of friendship and mutually beneficial cooperation, has been accumulated. There are no contradictions or unresolved issues between our countries. We reaffirm our commitment, our readiness to make maximum use of the existing potential for further development of cooperation in the military and military-technological fields," said Colonel General Alexander Fomin.

In turn, Tarique Ahmed Siddique thanked Russia for its help over 50 years of bilateral relations. "We are grateful for all the help you have given us during this time. We remember with particular warmth the help that you provided to our country during the liberation struggle, a lot of countries turned away from us, but you supported us and we still remember this with warmth," he said.

The sides gave a positive assessment to bilateral cooperation in the military and military-technical fields and outlined steps for their further expansion.

Russian Deputy Defence Minister Colonel-General Alexander Fomin holds a meeting with an adviser to the Prime Minister of Bangladesh : Ministry of Defence of the Russian Federation

The sides reaffirmed their desire to make the best possible use of the existing potential for deepening military cooperation.

eng.mil.ru

 

[Isa Khan]

Bangladesh's exports to South Asian nations reached a new high in the last fiscal year of 2021-22 for having grown steadily over the past three years, according to Export Promotion Bureau (EPB).

India's zero-duty benefit for most Bangladeshi items aided the growth, particularly in the last fiscal year, when overall exports to eight countries in the region grew 53 per cent year-on-year to $2.28 billion.

The demand for garments made in Bangladesh has been growing in Indian and Nepalese markets on the back of their expanding middle-income population.

Moreover, sourcing is on the rise by foreign retailers and brands like Walmart for Indian markets and by the neighbouring country's domestic retailers and brands such as Reliance and Aditya Birla, said exporters.

India alone accounted for $1.99 billion or 87 per cent of the total exports receipts from the South Asian Association for Regional Cooperation (Saarc) in fiscal year 2021-22, showed data from the EPB.

Delhi provided the zero-duty access to Dhaka in 2011 for all products, except 25 alcoholic and beverage items.

"It is encouraging that our export is growing in the Saarc region. We have long expected our trade in the region to grow," said Asif Ibrahim, vice-chairman of Newage Group, a garment exporter.

Asian countries such as India, Japan and China are the next target markets for Bangladesh as the country is set to lose its preferential market access in 2026 following its graduation from the group of least-developed countries, he said.

Previously, the country's exports to the region were mainly confined to formal woven shirts.

Now, garment manufacturers send inner garments, denim and causal knitwear products apart from other consumer goods.

With the buoyancy in export growth to the region, the Saarc region's share in Bangladesh's total export of $52 billion grew by one percentage point to 4 per cent, said the EPB.

Nearly three-fourths of Bangladesh's exports are destined for the European Union and North America, particularly the United States.

From basic to polo shirts, casual and formal dresses are the main export items to the Saarc nations.

Ibrahim thinks jackets are going to be the next major export item to Nepal because of the relatively colder weather and lengthy winter season in the Himalayan nation.

Shipments to Nepal and Pakistan were also encouraging. Bangladesh exported goods worth more than $105 million each to Nepal and Pakistan in FY22.

"We are receiving a lot of responses from our Indian customers as we enjoy the zero-duty benefit in the country," said Sharif Zahir, managing director of Ananta Group, another garment exporter.

"The exports to the Indian market are really encouraging for Bangladesh," he said.

Bangladesh's exports to India can potentially rise by 300 per cent, he added.

Selim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM), said earlier the Saarc region accounted for less than 2 per cent of Bangladesh's overall exports.

"We have seen that there has been progress in exports in the last two years. That is very encouraging. Our exporters have started realising that they will have to diversify markets," he said.

"This shows success of Bangladesh's exporters in market diversification but they are yet to diversify products," he pointed out.

He said garments dominate exports to the Saarc region as to other destinations for their global acclaim, which also shielded apparel products from the challenges of entry.

"There is an opportunity for Bangladesh to increase exports of other products to India," said Raihan, also a professor of economics at the University of Dhaka.

He said improving product quality through capacity enhancements not only of exporters but also of the Bangladesh Standards and Testing Institution in testing and certification are required for boosting exports.

Besides, improvement of facilities and connectivity of the ports will reduce trade costs and thereby facilitate shipments, he said.

"There have been improvements on the Indian side as the country has developed a system of integrated check-posts at borders. But there are deficits on the Bangladesh side," he said.

South Asia is the least-integrated region in the world and despite being one of the most populous regions, intra-regional trade sits at less than 5 per cent of their total trade, according to a World Bank study.

Border challenges mean it is about 20 per cent cheaper for a company in India to trade with Brazil instead of a neighbouring South Asian country, it said.

Trade has been limited by several factors, such as inadequate roads and marine and air transport, protective tariffs, real and perceived non-tariff barriers, restrictions on investments and a broad trust deficit throughout the region, it added.

Inter-regional trade stands at 35 per cent in East Asia and 60 per cent in Europe.

Exports to Saarc countries reach new heights

Bangladesh’s exports to South Asian nations reached a new high in the last fiscal year of 2021-22 for having grown steadily over the past three years, according to Export Promotion Bureau (EPB).

www.thedailystar.net

Qatar has expressed its interest in hiring skilled and semi-skilled workers from Bangladesh in the healthcare, hospitality, driving, construction and IT sectors as the Gulf nation faces a shortage of skilled workforce.

Visiting Labour Minister of Qatar Ali bin Saeed bin Al Samikh Al Marri made the expression at separate meetings with the expatriate welfare minister and the foreign affairs minister in Dhaka on Sunday.

After a meeting with the labour minister, the expatriate ministry and foreign ministry officials said that the Arab nation has expressed its commitment to protect and strengthen migrant labour rights amid wide criticisms from international rights groups.

"Many stadiums, hotels, and markets have been built in Qatar on the occasion of the World Cup. Apart from this, skilled workers will be needed in the health and IT sectors as well," Md Shahidul Alam, director general of the Bureau of Manpower, Employment and Training (BMET), told The Business Standard.

Referring to the low number of labourers going to Qatar in the last few years, he said, "We have proposed to set up a Bangladesh-Qatar technical training centre to provide skilled workers as per the demand of Qatar."

He said Qatar's minister has called upon the Bangladeshi workers to deal with issues legally rather than staging agitations if any of their rights are violated.

The BMET director general mentioned that the labour rights issues have also been discussed in the joint working group meeting of both countries on Sunday.

During a courtesy call on Foreign Minister AK Abdul Momen, Qatar's labour minister mentioned that they want to hire more skilled workers from Bangladesh in the coming days.

Momen briefed him about the initiatives taken by the Bangladesh government for skill development to meet growing demand at home and abroad, read a press release of the foreign ministry.

Some four lakh Bangladeshis are working in Qatar, according to an unofficial estimate.

The country recruited more than 50,000 Bangladeshis on average in the pre-Covid years.

Till July, the Gulf nation has recruited 12,344 workers from Bangladesh this year while the number was 11,158 in 2021, according to BMET.

Recruiting agencies in Bangladesh said that most of the workers are hired for the construction, driving and cleaning sectors.

Leading professional services networks PwC conducted a survey of more than 1,500 employees across the Middle East recently, in which 75% of respondents in Kuwait and 60% in Qatar said their country has a shortage of people with specialised skills, reports middle east-based news portal ZAWYA.com.

At a meeting with Expatriate Welfare Minister Imran Ahmed, Ali bin Saeed bin Al Samikh Al Marri emphasised sending skilled workers suited to the country's growing labour market, the ministry in Dhaka said in a press release.

Praising Bangladeshi workers, the labour minister said Qatar's labour law has been amended. In this act, foreign workers will get all the same benefits as domestic workers.

He also said actions are being taken immediately if employers engage in illegal activities with foreign workers. A welfare fund has been set up for workers working in Qatar. Payments are made from this fund if an employer is unable to pay dues, added the press release.

In the meeting, the expatriate welfare minister appreciated Qatar's positive reforms regarding changes in the Kafala system, which is used to monitor migrant workers, and setting up minimum wages.

Qatar keen on hiring more skilled workers from Bangladesh

Qatar has expressed its interest in hiring skilled and semi-skilled workers from Bangladesh in the healthcare, hospitality, driving, construction and IT sectors as the Gulf nation faces a shortage of skilled workforce. Visiting Labour Minister of Qatar Ali bin Saeed bin Al Samikh Al Marri made...

www.tbsnews.net

 

[Isa Khan]

Dubai Ports (DP) World Authority of the United Arab Emirates (UAE) has expressed interest in Chittagong Sea Port and its bay-terminal operations and integrated logistics support.

A delegation led by Rizwan Sumer, the chief executive officer of DP World's Subcontinent, met the State Minister for Shipping Khalid Mahmud Chowdhury and expressed their interest on Tuesday.

They have also expressed interest in investing in the Inland Container Depot (ICD) and maritime sectors, reports Bangla Tribune.

The meeting discussed the strengthening of bilateral and commercial relations between Bangladesh and the UAE.

Secretary of the Ministry of Shipping Mustafa Kamal, DP World Authority Subcontinent Director (Commercial and Business Development) Kevin D'Souza, DP World Bangladesh Country Director Shamimul Haque and senior officials of the Ministry were present on the occasion.

UAE keen to invest in Bangladesh's maritime sector

Both countries also discussed the strengthening of bilateral and commercial relations

www.dhakatribune.com

Bangladesh Ambassador to Cambodia Abdul Hai has said that Bangladesh is interested in “contract farming” in Cambodia.

He had a specific discussion with Cambodia's Agriculture Minister Veng Sakhon about the possibility of contract farming in their country, reports Bangla Tribune.

According to a notification sent from the embassy, the meeting discussed the possibility and actions of contract farming in Cambodia raised during the recent visit of the foreign minister of Bangladesh to Cambodia.

Considering the perspective of Bangladesh, the ambassador stressed the discussion at the technical level of the two countries.

He highlighted Bangladesh's success in agriculture and food security and the contribution of Bangladeshi agronomists in this field to the Cambodian minister.

Meanwhile, the agriculture minister also informed the Bangladesh ambassador of their success in contract farming.

The ambassador emphasized the implementation of the Memorandum of Understanding signed in 2017 on cooperation in the field of agriculture between the two countries.

Minister Veng mentioned the involvement of the country's farmers, non-governmental organizations and businessmen in this regard.

In the meeting, a decision was taken to advance the discussion on contract farming under the implementation of the 2017 MoU signed, the embassy said.

The two countries will move forward in the matter of detailed discussion and signing of necessary documents as soon as possible.

Bangladesh interested in contract farming; Cambodia assures of support

Both counties took a decision to advance the discussion on contract farming under the implementation of an MoU signed in 2017

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Bangladeshi nationals will be able to avail on-arrival visa in Egypt.

Egyptian government has introduced on-arrival visa for Bangladeshi citizens, but only those who have valid used visas or residence permits from Japan, Canada, Australia, New Zealand, the United States, the United Kingdom and European countries of the Schengen area on their passports are eligible for the on-arrival visa at any port of entry in Egypt.

Recently, Bangladesh Embassy in Cairo received an official circular from the Office of the Assistant Foreign Minister for Asia under the Egyptian Foreign Ministry.

While confirming the development, Bangladesh Ambassador to Egypt, Monirul Islam, said for a few months, it was difficult for Bangladeshi passport holders to get visas from Egyptian embassies in different countries of the world, including in Dhaka. Especially due to the Covid-19 pandemic, applicants had to wait for a long time to get a visa.

In March, the Bangladesh Embassy in Egypt requested to relax and simplify the visa system during a meeting with the concerned Egyptian authorities and the Assistant Foreign Minister for Asia, he said.

Monirul hoped that this arrangement will allow many Bangladeshis to travel to Egypt. "If you have a visa or residence permit from the mentioned countries, you can enter Egypt in transit or directly while traveling to any country in the world.

"This facility will be more beneficial for those who want to travel to Europe and America with Cairo transit," Monirul Islam added.

According to the embassy, this facility will be applicable till April next year at the initial stage. Later, there is an opportunity to extend its term again through talks between the two countries.

Those interested in visiting Egypt have been asked to carry a copy of the translation of the Egyptian government's circular issued on August 18, 2022 on the verified Facebook page of the Bangladesh Embassy in Cairo.

Egypt introduces conditional on-arrival visa for Bangladeshis

Bangladeshi nationals will be able to avail on-arrival visa in Egypt.

www.thedailystar.net

The government has started the process of importing fertiliser from Russia as Moscow has agreed to supply 1.2 lakh tonnes of Muriate of Potash (MOP) to Bangladesh via the sea port of a third country.

This amount of fertiliser will possibly be enough to fully meet its demand in the country in the coming season.

The Bangladesh Embassy in Moscow will meet with Russian officials on Wednesday to finalise the payment method and insurance coverage of the fertiliser-carrying ship, sources at the agriculture ministry told The Business Standard.

Last year, the government signed an agreement with Russia to import 1.8 lakh tonnes of MOP. Bangladesh had procured 60,000 tonnes of the amount before the Russia-Ukraine war began.

In March this year, the Cabinet Committee on Public Purchase approved a proposal to procure 30,000 tonnes of MOP from Russia amid sanctions imposed by the United States and the European Union on Moscow's trade and financial transactions. But Bangladesh could not import the fertiliser because of the sanctions.

Agriculture Minister Muhammad Abdur Razzaque told The Business Standard that they have started the process to procure the remaining amount of MOP fertilisers as the US announced to lift the sanctions on fertiliser imports from Russia.

"Our ambassador there will hold a meeting with Russian officials tomorrow [Wednesday] to resolve payment-related problems," he noted.

Moscow will supply fertiliser using the port of a third country, keeping all the terms of the agreement for MOP imports unchanged. But the fertiliser price may be determined as per international market rates, he also said.

Officials at the agriculture ministry said the annual demand for MOP fertilisers in Bangladesh stands at about eight lakh tonnes, of which about 60% comes from Russia and Belarus. After the US and the EU imposed sanctions on these two countries following Moscow's invasion of Ukraine, Bangladesh took initiative to import fertilisers from other countries, including Canada, risking a possible rise in subsidies on fertilisers.

Prices of fertilisers in Canada are relatively higher and shipping cost is also very high. Yet, the agriculture ministry struck a deal with Canada for procuring 5.5 lakh tonnes of DOP.

But Prime Minister Sheikh Hasina has directed the relevant ministries and departments to figure out a way to import low-cost fertilisers, fuel oil and wheat from Russia to deal with the ongoing dollar crisis.

In view of that, the agriculture ministry has taken the initiative to import the remaining 1.2 lakh tonnes of MOP as per the previous agreement.

The US is now importing fertilisers from Russia. According to a Reuters report, a ship, carrying about 39,000 tonnes of urea ammonium nitrate solution left Russia's St Petersburg for the US.

Neighbouring countries India and China are also importing large quantities of oil from Russia at low prices despite the US sanctions.

Even the EU, which has taken a strong stand for Ukraine in the war, continues to import oil and gas from Russia.

In the meantime, a committee of the Bangladesh government is now analysing a proposal that Moscow placed before it to supply refined oil at a cheaper cost to Bangladesh.

If fuel is procured from Russia, irrigation costs will come down, so will government subsidies on the agriculture sector, say agriculture ministry officials.

The MOP fertiliser is used more in cultivating various vegetables, including potatoes. It is widely used in early potato production with its demand increasing from October onwards, they also say, hoping that it will be possible to import the fertiliser from Russia before that.

Speaking on problems related to fertiliser imports, the agriculture minister said an import LC opening by a local bank needs to be confirmed by banks having international contacts. But global banks, including Standard Chartered and HSBC are not open to transactions with Russian banks.

Moreover, ships are reluctant to enter Russia's ports on the Black Sea because global insurance companies are not providing insurance coverage to ships sailing into the Black Sea, he also said

Agriculture Minister Abdur Razzak called the ambassador of Bangladesh in Moscow to find out the latest information about the import of fertilisers from Russia in the presence of this reporter.

Later, the minister told TBS, "The shipping problem regarding fertiliser imports from Russia is being solved. Russia will supply MOP fertiliser to Bangladesh via any third country."

Besides, the ambassador told the agriculture minister that the process of importing 3.5 lakh tonnes of wheat from Russia is almost final.

Dr Md Abdus Sattar Mandal, a former member of the Planning Commission and former Vice-Chancellor of Bangladesh Agricultural University, believes the reopening of the fertiliser imports from Russia is good news for Bangladesh.

The government was worried over fertiliser stocks as supplies from its major supplier of non-urea fertilisers had got stuck because of the Western sanctions, he noted.

"If we can import fertilisers from Russia at a favourable price, it will definitely give good results for us, there is no doubt about that. It should be ensured that the farmers get fertilisers on time at the price set by the government," he also said.

Apart from MOP, the agriculture ministry also imports TSP and DAP fertilisers for farmers. There are enough stocks of the two fertilisers to meet the demand in the coming season, officials at the ministry said.

The government has eight lakh tonnes of DAP in its stock against the demand for 7.5 lakh tonnes in the next season, while its TSP stock stands at four lakh tonnes as per the demand.

Bangladesh Chemical Industries Corporation under the industries ministry looks after production and imports of urea fertiliser. As Bangladesh cannot meet its entire demand with local production, it imports the rest from the Middle East.

The agriculture minister said that even if the supply of fertilisers can be ensured as per the demand, there is a chance of production disruption owing to low rainfall.

Besides, irrigation is being hampered because of power rationing and a record hike in diesel price, he also said.

The government had contemplated subsidising diesel or giving incentives to farmers with Tk10 account holders for irrigation. Talking about it, the minister said the subsidy for agriculture has already increased a lot. The fertiliser import cost has now shot up to Tk1,100 from Tk250. The agriculture sector now needs about Tk28,000 crore in subsidy.

"Giving incentives for irrigation or a subsidy on diesel is a very complicated process. Such facilities are misused as well. On the other hand, there is already huge subsidy pressure, so for now it is not possible to reduce the price of diesel used for irrigation or to give separate incentives for irrigation," the minister added.

Process begins to import Russian fertiliser

The government has started the process of importing fertiliser from Russia as Moscow has agreed to supply 1.2 lakh tonnes of Muriate of Potash (MOP) to Bangladesh via the sea port of a third country. This amount of fertiliser will possibly be enough to fully meet its demand in the country in...

www.tbsnews.net

 

[Isa Khan]

A cloud of uncertainty over payments for Bangladesh's sourcing of food grains and fertilisers from Russia, Ukraine and Belarus has now been dispelled as 24 global banks have agreed to give letter of credit (LC) confirmation for imports from those countries, said Commerce Minister Tipu Munshi on Thursday.

However, the minister could not specifically name the banks.

Seeking anonymity, a commerce ministry official said Russia suggested Bangladesh to approach these 24 global banks that have still kept on dollar transactions with Moscow.

Russian banks, which have remained out of the purview of Western sanctions, have also given their consent to accept dollar payments, Tipu Munshi noted, hoping that imports will get back to normal and prices of food products will come down.

"We want to inform everyone that there is no problem in importing food from Russia and Ukraine. So, we have no reason to worry," the minister told the media after a Cabinet Division meeting on how to settle payments for grain imports from Russia, Ukraine and Belarus.

Food Minister Sadhan Chandra Majumder said an easy payment system has been ensured. So, rice and wheat will continue to come in, leading to a quick fall in their prices in the local market.

Officials at agriculture and food ministries say there is now no obstacle to the ongoing process of importing five lakh tonnes of wheat and 1.2 lakh tonnes of Muriate of Potash from Russia.

Last Tuesday Agriculture Minister Muhammad Abdur Razzaque told The Business Standard that global banks were not giving confirmation to LCs opened by Bangladeshi banks for transactions with Russia.

"In this situation, we have to think about what will be the payment method for fertiliser and wheat imports," he said.

The commerce minister said they did not discuss the payment process for the imports of fuel oil from Russia. On Wednesday, Russian Ambassador to Bangladesh Alexander Mantytskiy told journalists that Russia had been in talks with Bangladesh to decide on a payment currency other than the dollar for its fuel supplies to the latter.

Officials at state-owned banks and the Bangladesh Bank said the United States cut off seven out of nearly 300 Russian banks from the international financial messaging system SWIFT. Bangladesh mainly opens LCs with 15 banks that are out of the sanctions.

After opening an LC with those banks, a bank of Bangladesh needs to secure confirmation from global banks based in the European Union, they noted.

An official of the Bangladesh Bank told TBS that Bangladesh imports goods from Russia by opening LCs with Moscow's Ak Bars Bank and Bank Zenit, which are not sanctioned by the US.

Middle East-based Mashreq Bank, having correspondent banking with the two banks, gives confirmation to LCs opening for fertiliser and wheat imports by Bangladeshi banks and has continued it, he noted.

Earlier, on 16 August, the Bangladesh Bank, in a letter to the Financial Institutions Division of the finance ministry, also said normal financial transactions between Bangladesh and Russian banks that are not under the US sanctions are going on.

But Bangladesh has not been able to import fertilisers and food grains from Russia and Belarus since February following Western sanctions on Moscow over its invasion of Ukraine.

On the other hand, Ukraine's Black Sea port city of Odessa had been blocked by Russian forces, and the imports of food grains from Kiev had also stopped. As a result, there was a shortage of wheat in Bangladesh.

The government was also worried about ensuring supply of fertilisers.

In this situation, last July, the United States said they had no restrictions on import of fertilisers, food and agricultural products from Russia. Besides, exports from Ukrainian Black Sea ports reopened following an agreement, brokered by the United Nations along with Turkey.

So, while Bangladesh had already finalised imports of fertilisers and wheat through a negotiation with Russia, the government was concerned about whether dollar payment would be possible.

Mohammad Shams-Ul Islam, former managing director and CEO of Agrani Bank Ltd, told TBS that there has been no problem in LC confirmation in Bangladesh's bilateral trade transactions with the Russian banks that are still connected to SWIFT.

There will also be no problem in payment of import of wheat and fertiliser in dollars on a government-to-government basis, he said.

Russia issued a list of "unfriendly" countries in the wake of severe economic sanctions over the Ukraine conflict. Vladimir Putin has demanded payment in roubles for Russian gas, oil and food grains sold to those "unfriendly" countries, he noted.

As Bangladesh is out of this list and there is no US ban on the imports of Russian food grains and fertilisers, global banks will confirm import LCs in dollars. African countries are also importing food grains from Russia in dollars, he said.

State-owned Sonali Bank opens LCs in favour of the Rooppur nuclear power plant in Bangladesh.

An official of the bank's branch dealing in foreign exchange transactions told TBS that they open LCs with a bank owned by the Russian government. There are no US restrictions on that bank and LC confirmation is not required.

Even after the start of the war, there was no problem in transactions with the bank, he said.

24 global banks ready to confirm LCs for grain imports from Russia

A cloud of uncertainty over payments for Bangladesh's sourcing of food grains and fertilisers from Russia, Ukraine and Belarus has now been dispelled as 24 global banks have agreed to give letter of credit (LC) confirmation for imports from those countries, said Commerce Minister Tipu Munshi on...

www.tbsnews.net

https://twitter.com/i/web/status/1562833954549673985

 

[Isa Khan]

Bangladesh has informed Nepal that it would be concluding the deal to buy 500MW electricity from 900MW Upper Karnali hydropower project which will be developed by India's GMR Group, by September

Bangladesh and Nepal have decided to request India to allow export of 40-50MW of electricity from Nepal to Bangladesh in the initial phase utilising the high-voltage direct current power systems in Bheramara of Bangladesh.

The secretary-level Joint Steering Committee (JSC) formed for energy cooperation between Nepal and Bangladesh took the decision on Thursday, reports The Kathmandu Post.

Mohammad Habibur Rahman, secretary to Power Division under the Ministry of Power, Energy and Mineral Resources of Bangladesh, led the Bangladesh delegation in the JSC meeting. Nepal's Energy Secretary Sushil Chandra Tiwari chaired the meeting.

Mohammad Hossain, director general of Power Cell, who participated in the Bangladesh-Nepal Working Group and 4th Joint Steering Committee, told The Business Standard that the power will come through the existing transmission line.

"Nepal will supply the power to India and India will evacuate the power through the Bheramara HVDC transmission line, he added.

During the fourth JSC meeting on energy cooperation, Bangladesh has informed Nepal that it would be concluding the deal by September to buy 500MW electricity from the 900MW Upper Karnali Hydropower Project, which will be developed by India's GMR Group, according to a press statement issued by Nepal's energy ministry on Thursday.

The meeting also decided to cooperate on the electricity sector by providing the environmental impact assessment report of 683MW Sunkoshi III Hydropower Project to Bangladesh.

In 2013, India and Bangladesh inaugurated the Baharampur-Bheramara cross-border power transmission link between the countries that would initially facilitate the exchange of 500MW electric power.

At present, Bangladesh imports 1,000MW electricity through this line.

In 2019, GMR and Bangladesh had signed a power purchase agreement (PPA) and the signed PPA had been submitted to the Bangladesh Cabinet for review.

Nepal's energy ministry said in the statement that Bangladesh will provide its comments on the report, after which a joint committee will proceed ahead for the development of the project.

The both sides decided to make efforts for a tripartite agreement between Nepal, Bangladesh and India for the development of Nepal-Bangladesh dedicated power transmission line.

The both sides agreed to cooperate on solar home systems and other renewable energy.

Energy cooperation: Nepal to export 50MW electricity to Bangladesh initially

Bangladesh has informed Nepal that it would be concluding the deal to buy 500MW electricity from 900MW Upper Karnali hydropower project which will be developed by India’s GMR Group, by September

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The government is negotiating with Qatar for striking a long-term deal to import liquefied natural gas (LNG) as its price has climbed up in the international market abnormally, said Salman F Rahman, private industry and investment adviser to the prime minister.

He was speaking at an event titled 'Meet the Overseas Correspondents Association of Bangladesh (OCAB)' at the office of the Bangladesh Investment Development Authority in Dhaka today.

"The government is also trying to import fuel oil from India as there is a sanction on the import of Russian oil now," Rahman said.

Even if crude oil is imported from Russia, Bangladesh's lone refinery, Eastern Refinery Ltd, has no capacity to refine the oil, he said.

Currently, the government imports finished petroleum products such as diesel and heavy fuel oil from 14 sources to meet the domestic demand.

The government is mainly looking for an alternative to local gas as more than 70 per cent of electricity is produced from gas-fired power plants, Rahman said.

Recently, LNG prices have surged in the international markets, forcing the government to stop buying the super-chilled fuel from the spot market.

The spot market is where commodities are traded for immediate delivery.

Govt negotiating with Qatar to import LNG: Salman F Rahman

The government is negotiating with Qatar for striking a long-term deal to import liquefied natural gas (LNG) as its price has climbed up in the international market abnormally, said Salman F Rahman, private industry and investment adviser to the prime minister.

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The Swiss Embassy has informed the Ministry of Foreign Affairs that Nathalie Chuard's statement regarding Bangladesh seeking information on the deposits of Bangladeshi money in Swiss banks was wrong.

A report has been submitted to the High Court on Saturday in this regard, reports Bangla Tribune.

According to the report, even though the Swiss embassy did not apologize to the Ministry of Foreign Affairs, they have admitted that the statement was wrong.

Earlier on August 10, at the “DCAB Talk” organized by the Diplomatic Correspondents Association, Bangladesh (DCAB) at the National Press Club, Switzerland's ambassador to Dhaka, Nathalie Chuard, said that the Bangladesh government did not ask for information about the money deposited in the Swiss bank for any specific person.

“Switzerland continues operations to correct Swiss bank errors. But I want to tell you that Switzerland is not a safe place to keep black money,” she added.

After taking notice of the matter on August 11, the High Court asked the state party and the Anti-Corruption Commission (ACC) to inform why the information of the depositors in the Swiss bank was not requested.

Later, Foreign Minister AK Abdul Momen alleged that the Swiss ambassador had lied.

Bangladesh Bank sought information from Swiss banks mentioning the names of 67 individuals, Foreign Minister AK Abdul said on August 12.

"At that time they provided information on one individual. However, information was sought several times," Momen said.

The foreign minister said Switzerland is Bangladesh’s friend and urged it not to provide misinformation.

Swiss embassy admits envoy’s statement was wrong

The envoy earlier this month said Bangladesh had not sought information on money deposited in Swiss banks by anyone specific

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[Isa Khan]

Bangladesh will send aid to the flash flood victims of Pakistan’s Balochistan, Prime Minister Sheikh Hasina has said.

“Awami League government is always generous towards humanity. Everyone has already been instructed to arrange food and other materials for Pakistan,” she said while joining a program at the capital’s Bangabandhu International Conference Centre on Tuesday.

She added that the children of the country are suffering the most.

“We [Bangladesh] won in the 1971 Liberation War against Pakistan. We have a duty to help them, and we will fulfill that,” she noted.

The prime minister also said that Father of the Nation Bangabandhu Sheikh Mujibur Rahman has always emphasized helping others in need.

Early estimates put the damage from Pakistan's recent deadly floods at more than $10 billion, its planning minister said on Monday.

He later said that the world has an obligation to help the South Asian nation cope with the effects of man-made climate change, reports Reuters.

Unprecedented flash floods caused by historic monsoon rains have washed away roads, crops, infrastructure and bridges.

It killed at least 1,000 people in recent weeks, while affecting more than 33 million, over 15% of the country's 220 million population.

Meanwhile, food prices have shot up due to flooded crops and impassable roads.

PM Hasina: Bangladesh to send aid to flood-hit Pakistan

'I have already instructed to arrange food and other materials for Pakistan’

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https://twitter.com/i/web/status/1562773358953250816

 

[Isa Khan]

Bangladesh looks to gain a foothold in the Kingdom of Saudi Arabia (KSA) with seven potential products, including food and beverage, apparel, and jute and leather, products which are now sourced from the global market for $35 billion annually.

Ceramic, pharmaceutical, and plastics also have good demand in this market - where Dhaka currently has a stake of less than $300 million.

Keeping this goal in mind, Dhaka wants to showcase its capacity through the first ever "Trade and Investment Fair-2022" in Riyadh to be held during 6-8 October this year, according to a recent letter of the Export Promotion Bureau (EPB).

The expo will also focus on attracting some investment to Bangladesh.

The EPB's effort to plan to explore new export markets by organising a single-country expo is to reduce dependence on US and EU markets.

Similarly, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is looking for new markets; as part of its endeavour, it will organise expos in China, Japan and Korea next year to enhance the country's shares in those destinations and reach the $100 billion apparel shipment target by 2030.

According to the International Trade Centre (ITC) data, Saudi Arabia's imports stood at $152.34 billion in 2021. China is the KSA's largest export source, $31.07 billion, followed by the USA, UAE, India and Germany.

On the other hand, Bangladesh exported only $290 million in FY2022, of which apparel shipments amounted to about $144million, according to the EPB. Saudi Arabia is the country's 24th largest export partner out of 202 destinations, while the country is also the 26th largest destination for apparel shipments.

However, EPB data does not show the actual amount of exports to KSA, exporters say. The actual figures are higher, they assert.

They say a good amount of export is conducted informally through individual initiative as cargo or baggage, something that also carries a risk of non-payments for goods.

Talking to The Business Standard, BKMEA Executive president Mohammad Hatem said, "We are scheduled to join the KSA expo to explore the untapped market potential."

Currently, Bangladeshi apparel makers are exporting via some Bangladeshi vendors based in KSA and most of them cheat their exporters, he also said, adding that in most cases, the apparel makers have no recourse as they trade informally.

He hoped that this expo would open up a new window of opportunity to do business with Saudi retailers directly.

BGMEA vice-president Shahidullah Azim said 15 of their members are scheduled to join this expo. The expo potential will also tap the market in the region besides Saudi Arabia as it is also the centre of the Gulf countries.

Saudi Arabia has been sourcing most of their apparel items from China, India, Turkey and other countries. "Our participation is very nominal in this market despite being the second-largest apparel exporter globally," he noted.

A huge opportunity in this market is still untapped owing to a lack of government initiative. It will be a big market for other export items, such as home textile, agricultural products, leather goods, jute and ceramics, he continued.

The government initiative will help to grab at least $5 -$6 billion market share, he pointed out, adding that Arabian traditional dresses are also high in value products.

"We already have good export growth in Asian countries as our alternative markets," Shahidullah Azim said.

To find new buyers and boost earnings from those potential markets, they are also going to participate in an expo in Dubai in November this year.

Rashed Mosharaff, executive director marketing at Zaber and Zubair Fabrics Ltd (Home), said they are doing business in Saudi Arabia and other gulf countries through their own retailers.

Landmark Group, one of the largest retailers based in Dubai, is also doing well in these markets, he said, adding that Zaber and Zubair make home textiles for that retailer under their brands – Max, Homecenter, Babyshop, and Home Box.

Eleash Mridha, managing director at Pran Group, the largest agro-based products exporter, said, "We are having a good business in gulf countries, mostly in KSA, UAE, Qatar and Lebanon."

He also mentioned that gulf countries account for about 30% of their total exports, which also have double-digit growth each year.

Pran-RFL exported goods worth $532 million in FY22, while it also set a target to export products worth $1 billion by 2025.

$10bn RMG potential in Gulf countries yet untapped

Despite good diplomatic relations with Gulf countries, Bangladesh is missing out on the $10 billion unexplored apparel market owing to a lack of initiatives on parts of the government and the private sector.

The Gulf Cooperation Council is a political and economic union of Arab states, including the United Arab Emirates (UAE), Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.

According to the International Trade Centre data, in 2020, the UAE sourced about $4.40 billion worth of apparel items from global markets. The numbers for other countries there were: Saudi Arabia $3.01 billion, Kuwait $1.13 billion, Qatar $660 million, Oman $608 million and Bahrain $274 million.

Bangladesh now exports only $367.49 million worth of goods to this region, according to EPB data.

But the country can supply about 5% of the annual demand of the UAE, around 4% of Saudi Arabia's and less than 1% of the rest, the bureau says.

Earlier BGMEA President Faruque Hassan said Bangladeshi apparel exporters have a big potential in the Gulf and Middle East markets that have remained untapped for a long time owing to a lack of initiatives.

"We are planning to explore those markets in association with the commerce ministry and the foreign affairs ministry," he added.

Bangladesh eyes $35b slice of Saudi market

Bangladesh looks to gain a foothold in the Kingdom of Saudi Arabia (KSA) with seven potential products, including food and beverage, apparel, and jute and leather, products which are now sourced from the global market for $35 billion annually. Ceramic, pharmaceutical, and plastics also have good...

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The Cabinet Committee on Public Procurement has approved the proposal to import 5 lakh tonnes of wheat from Russia on a government-to-government (G2G) basis.

"Payment for the consignment will be done in US dollars and the import price per kg will be Tk 40.85," said Cabinet Division Additional Secretary Md Abdul Barik after the committee's meeting chaired by Finance Minister AHM Mustafa Kamal on Wednesday (31 August).

He said that wheat imported from Russia will cost $430 per ton.


"A Russian company will supply this wheat to Bangladesh. The total cost of importing 5 lakh tonnes of wheat will be Tk 2042.50 crore," he added.

Besides, the committee also approved the proposal to import 3.3 million tonnes of rice from India and Vietnam.

Out of this, 2.3 lakh tonnes of rice will be imported from Vietnam and 1 lakh tonnes from India. The cost of importing 70,000 tonnes non-basmati parboiled rice from India by sea will be Tk 42.13 per kg. Besides, 30,000 tonnes will be imported by road, where the cost per kg will be Tk 40.70. In both cases, the import price of rice per tonne is estimated at 443.50 dollars.

The committee also approved the proposal to import 2 lakh tonnes of Thai non-basmati parboiled rice from Vietnam. This rice imported at the rate of $521 will cost Tk 49.49 per kg.

Cabinet Committee on Public Procurement also approved the proposal to import 30 thousand tonnes of Atap (dried in the sun) rice from Vietnam at the price of 494 dollars. In this, the import cost per kg will stand at Tk46.93.

Import of 8.30 lakh tonnes of rice, wheat approved

The grains will start entering Bangladesh in phases from September

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South Korea will increase the amount of its Economic Development Cooperation Fund (EDCF) loan for Bangladesh from $700 million to $3 billion, said South Korean Ambassador to Bangladesh Lee Jang-Keun.

"The amount we agreed to provide was $700 million - between 2021 and 2025. We made an agreement. But very recently we decided to increase this amount to $3 billion for 2022 to 2026," Ambassador Lee Jang-Keun said during the event titled "DCAB talk" at the national press club organised by the Diplomatic Correspondent Association of Bangladesh (DCAB) on Wednesday (31 August).

"This 5 years period we will provide $3 billion. That means we can cooperate with the Bangladesh government for larger or meaningful progress towards its development," he added.

"The decision has been made. We are working with the government to implement this decision. For this, we need to conclude the framework agreement," he said adding that "the process is now underway. We expect that it will be concluded within this year."

While answering a question, he said, "Already there has been discussion between Korean Agencies and the Economic relations division of Bangladesh about the projects they could implement through this agreement. But we have our own ideas of the priority areas and the Bangladesh government also has its own priorities in working with Korea."

"Infrastructure might be a very important priority because before, the size of our contribution was not big enough to implement as many as big infrastructure projects of the Bangladesh government. If this amount of total size is increased, then it might implement bigger projects for infrastructure," he added.

He further said, "ICT, education, transportation, energy, environment, those areas might be some priorities. But it is only a general statement, the specific areas need to be discussed."

Earlier in December last year, Bangladesh and South Korea signed a loan agreement to provide $100 million in concessional loan from its EDCF to help the economic recovery of Bangladesh's hit by the Covid-19 pandemic.

The simple interest rate of the "Program Loan for Sustainable Economic Recovery Program (Subprogram)" concessional loan was 0.5% per annum. The maturity period will be 40 years, which includes a grace period of 15 years.

EDCF is South Korea's development financing programme for assisting the socio-economic development of developing countries.

The Republic of Korea has already provided $50 million of EDCF loan as budgetary support in December 2020 to help Bangladesh's efforts for fighting against the Covid-19 pandemic. Bangladesh is Korea's third largest recipient of official development assistance (ODA).

The ambassador also mentioned that S Korea is keen to cooperate on nuclear power plant projects in Bangladesh.

DCAB president Rezaul Karim Lotus and general secretary AKM Moinuddin also spoke at the event.

S Korea to increase soft loan to $3b for Bangladesh: Envoy

Ambassador Lee said S Korea is keen to cooperate on nuclear power plant projects in Bangladesh

www.tbsnews.net

 

[Isa Khan]

Commerce Minister Tipu Munshi today said that the launching of road communication with Bhutan via a third country would boost bilateral trade, commerce and tourism.

He also opined that communication between Bangladesh and Bhutan through Syedpur regional airport and Burimari and Banglabandha land ports would enhance bilateral trade and commerce and yield better outcomes for the two countries.

The commerce minister said this when a nine-member delegation of Bhutan, led by its Secretary of the Ministry of External Affairs Dasho karma Tshering, met him at his secretariat office today, said a Commerce Ministry press release.

Describing Bhutan as "a close friend of Bangladesh", Tipu said that Bhutan was the first country to recognize Bangladesh as an independent and sovereign state during the War of Liberation which Bangladesh recalls always with gratitude.

He mentioned that Bangladesh has already declared Syedpur Airport as a regional airport to set up air communication with Bhutan and other neighboring countries and has also undertaken necessary development activities for the airport.

The commerce minister said that the Bhutanese students can avail of high standard chartered accountancy education in Bangladesh.

He also noted that the Preferential Trade Agreement (PTA) signed between the two countries on December 6, 2020 has ushered in a new era between the two countries.

Commerce Ministry additional secretary Nur Md Mahbubul Haque and other high officials of the ministry were present on the occasion.

Earlier on Wednesday, the two-day 8th commerce secretary level meeting between Bangladesh and Bhutan ended in the capital with a set of decisions, including finalizing transit agreement and protocol in a bid to strengthen implementation of the PTA signed between the two countries.

Senior Secretary of the Ministry of Commerce Tapan Kanti Ghosh led the 20-member Bangladesh delegation while Secretary of the Ministry of External Affairs of Bhutan Dasho karma Tshering led the nine-member Bhutanese delegation during the two-day parley.

The other decisions taken in the meeting were simplifying communication through a 3rd country as well as taking initiatives for simplifying trade and commerce, boosting mutual cooperation to flourish tourism industry, enhancing mutual cooperation between Bangladesh Standards and Testing Institution (BSTI) and Bhutan Standard Bureau (BSB), Department of Agriculture Extension (DAE) and Bhutan Agriculture and Food Regulatory Authority.

The other major decisions taken in the meeting were boosting mutual cooperation to remove tariff and non-tariff barriers in trade and importing stones from Bhutan through Sonarhat Land Port alongside transporting Bhutanese products.

Under the signed PTA, Bangladesh would get duty-free access of some 100 Bangladeshi products to Bhutanese market while on the other hand Bhutan would get duty-free access of 34 of their products to Bangladesh market.

The next secretary-level meeting between Bangladesh and Bhutan would be held in Bhutan.

Road communication with Bhutan via 3rd country to boost trade, tourism: Tipu

Commerce Minister Tipu Munshi today said that the launching of road communication with Bhutan via a third country would boost bilateral trade, commerce and tourism. He also opined that communication between Bangladesh and Bhutan through Syedpur regional airport and Burimari and Banglabandha land...

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The 2nd Foreign Office Consultations (FOC) meeting between Bangladesh and Qatar was held at the Ministry of Foreign Affairs of the State of Qatar on Monday (12 September).

State Minister for Foreign Affairs, Md Shahriar Alam, led the Bangladesh delegation while the Qatari delegation was led by Soltan bin Saad Al- Muraikhi, state minister for Foreign Affairs of Qatar.

The meeting was held in a cordial atmosphere, reads a MoFA press release.

During the meeting, two delegations took stock and reviewed the entire gamut of bilateral, regional, and multilateral issues between the two countries.

The issues that came up for discussions included enhanced cooperation in skilled manpower and human resource development, increased business to business contact, visa waiver for diplomats and officials between the two countries, collaboration on food security, education and health, energy and power, civil aviation, etc.

State Minister of Bangladesh requested the Qatari side for considering investment in High-Tech parks, special economic zones, in construction and energy sectors, etc.

The Qatari side requested Bangladesh to send specific proposals in this regard.

The two sides also exchanged views on regional issues. They discussed celebration of Golden Jubilee of the diplomatic ties in 2024 by joint programmes including exchange of high-level visits and Bangladesh-Qatar Year of Culture, the release adds.

Shahriar Alam briefed on Bangladesh's recent remarkable progress in socio-economic development, robust economic growth as well as the government's efforts to establish Bangladesh as the regional hub of connectivity. He requested his Qatari counterpart to consider additional supply of LNG to Bangladesh to meet the increasing demand for industrial growth in the country.

He also sought Qatari support for a sustainable solution to Rohingya crisis.

The Qatari state minister appreciated the role of Bangladesh community in the development efforts of Qatar contributing to the economies of both the countries.

During the meeting, Bangladesh side reiterated the invitation to the Amir of Qatar from the President of Bangladesh.

The Qatari side informed that the Amir of Qatar may undertake a visit to Bangladesh next year.

Shahriar appreciated Qatar's overall preparations in hosting the FIFA World Cup to be held in Doha in November-December 2022.

They also expressed keen interests in recruiting nurses, medical professionals and technicians from Bangladesh. Both sides expressed their resolve to further consolidating the existing bond of friendship and to take them to new heights.

During the meeting, the two ministers signed an agreement on visa waiver for diplomatic, official and special passport holders between Bangladesh and Qatar.

Both sides agreed to sign agreements on Avoidance of double Taxation, Cultural Cooperation, Legal Fields collaboration, MoU on Education, and Cooperation on Waqf and Islamic Affairs, etc. during the upcoming high level visit.

The next round of Foreign Office Consultations (FOC) will be held in Dhaka in 2023.

The meeting was attended among others by Secretary (West) Shabbir Ahmed Chowdhury, Bangladesh Ambassador to Qatar Md Jashim Uddin and Director Asia Department at Qatari Ministry of Foreign Affairs Amb Soltan Laram.

2nd Bangladesh-Qatar FOC meeting held in Doha

The 2nd Foreign Office Consultations (FOC) meeting between Bangladesh and Qatar was held at the Ministry of Foreign Affairs of the State of Qatar on Monday (12 September). State Minister for Foreign Affairs, Md Shahriar Alam, led the Bangladesh delegation while the Qatari delegation was led by...

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[Isa Khan]

Bangladesh and Cambodia are likely to sign a free trade agreement (FTA), which will mainly offer Dhaka an opportunity to grab a bigger share in Phnom Penh's $1 billion pharmaceutical market, according to local businesses.

At a bilateral meeting on the sidelines of the 77th United Nations General Assembly in New York on Thursday, Prime Minister Sheikh Hasina expressed her interest for an FTA with Cambodia, and her Cambodian counterpart Hun Sen agreed to the proposal, Foreign Minister AK Abdul Momen told reporters.

To deal with possible challenges stemming from its graduation to a developing nation, Bangladesh has been negotiating with 17 countries, including India, Nepal, Bhutan, Malaysia and Vietnam, to strike FTAs, but it is yet to sign it with any, while Cambodia already has FTAs with 14 countries, including China.

If the FTA is signed, both the countries will enjoy duty-free trade facilities between them.

Cambodia with a population of around 2 crore has no large drug-making factories and the country meets 55% of its demand for drugs through imports. So, Bangladesh has good potential to enhance its export to the country with its high-quality, affordable medicines with duty-free market access after the signing of an FTA with it, say drug manufacturers.

Currently, Indian and Chinese companies control Cambodia's pharmaceutical market. Bangladesh exported $9.76 million worth of medicines to the country in FY22.

SM Shafiuzzaman, general secretary of the Bangladesh Association of Pharmaceuticals Industries, told The Business Standard, "Without special facilities, we cannot increase our medicine exports to Cambodia by competing with China and India. If an FTA is signed with the country, our exports will get a boost."

Leather and agro-processed products also have good demand in the Cambodian market.

Bangladesh now exports medicines, tableware, textiles products, seafood, tea, jute goods, spice, light engineering goods, knitwear items, etc to Cambodia while its imported goods include cotton, edible oil, fertiliser, staple fibre, etc.

In FY22, exports to the country stood at $18 million – the pharma sector accounts for more than 53% of it, while imports amounted to over $6 million, according to the Export Promotion Bureau.

Sources at the commerce ministry say it is possible to sign an FTA with Cambodia soon once a political decision comes from the heads of states of the two countries.

The bilateral trade between Bangladesh and Cambodia began following a meeting between foreign ministers of the two countries in 2006. Later in 2014, a joint commission was formed to further expand the area of trade cooperation.

Yet, Bangladesh is lagging behind when it comes to gaining a foothold in the Cambodian market owing to no FTA and China's monopoly of the market, commerce ministry officials noted.

They think that signing an FTA with Cambodia will help to enhance exports to the country.

Seeking anonymity, an official at the commerce ministry's FTA Cell told TBS that since 2000, China has taken hold of the Cambodian market with duty-free facilities. So, no other countries do well in the market without an FTA.

"The FTA with the country will not bring many benefits to Bangladesh as there is no demand for our main export product, readymade garments, there," he said.

Echoing him, Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association, said there are 600-700 garment factories in Cambodia. As they have their own raw materials, they are quite advanced in apparel production. Their position in the European market is also very good.

"So, we hardly have any chance to enter the market with our apparel products," he added.

Dr MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), told TBS, "If we can use Cambodia as a gateway to joining the world's largest trading bloc, the Regional Comprehensive Economic Partnership and the Association of Southeast Asian Nations [Asean], the signing of an FTA with the country will be beneficial."

FTA with Cambodia likely: Pharma exports see potential

Bangladesh and Cambodia are likely to sign a free trade agreement (FTA), which will mainly offer Dhaka an opportunity to grab a bigger share in Phnom Penh's $1 billion pharmaceutical market, according to local businesses. At a bilateral meeting on the sidelines of the 77th United Nations General...

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The report of Pakistan rejecting Bangladesh’s offer to supply humanitarian aid worth Tk1.4 crore (roughly $145,000) after the recent floods and heavy monsoons in the country reduced the hope of a quick revival from the economic crisis is false.

According to Ministry of Foreign Affairs sources, no formal proposal has been made to Pakistan in this regard so far, reports BBC.

Earlier, Bangladeshi Prime Minister Sheikh Hasina announced the aid for flood-ravaged Pakistan, according to local media.

According to some local news outlets, Pakistan Army was reportedly averse to the proposal of aid from Bangladesh as any such relief assistance may undermine Pakistan’s global image.

Taking any help from a country that was once part of Pakistan could be embarrassing for the Pak Army which still denies the genocide perpetrated by it against Bangladesh in 1971.

However, these reports of rejection of aid are completely false and baseless, confirmed by the Ministry of Foreign Affairs of Bangladesh and diplomatic sources in Islamabad.

The Bangladesh Ministry of Disaster Management and Relief on September 1 reportedly allocated funds for 10 tonnes of biscuits, 10 tonnes of dry cakes, 1,00,000 water purification tablets, 50,000 packets of oral saline, 5,000 mosquito nets, 2,000 blankets, and 2,000 tents to be sent to Pakistan.

Prime Minister Sheikh Hasina noted that the Awami League government had always been generous towards humanity and that the concerned authorities had been directed to assist in the relief efforts in Pakistan.

She further underscored that though Bangladesh had won the 1971 Liberation War against Pakistan, it was their duty to help Pakistan as Bangabandhu Sheikh Mujibur Rahman had always emphasized helping those in need.

According to Pakistan’s National Disaster Management Agency, unprecedented heavy monsoon rains and melting glaciers in the northern mountains of Pakistan resulted in huge floods that affected nearly 33 million people and killed an estimated 1,355 people including over 450 children.

Having no option of resurrecting the damaged economy due to sheer mismanagement, climate change, and natural calamity, the Pakistan government has appealed to the international community to provide aid for the flood victims, reported Bangladesh Live News.

UN Secretary-General Antonio Guterres on September 10 visited Pakistan to express solidarity with the Pak government and people and to exchange views on the national and global response to the catastrophe caused by climate change.

The US has responded by announcing an aid of $30 million while help has also been promised by the UK, UAE, Saudi Arabia, China, Qatar, and Turkey.

Nearly 80 districts of Pakistan have been worst hit by the floods. Thousands of people have been lodged in tents or are waiting for shelter under open skies along the main highway that leads to Hyderabad. Either side of the highway could be seen inundated by floodwater for miles.

Report of flood-hit Pakistan rejecting Bangladesh’s $145,000 aid offer false

It was reported that the Pakistan Army was averse to the proposal of aid from Bangladesh as any such relief assistance may undermine the country's global image

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