China offers stunning duty-free access to Bangladeshi goods

[BJlaowai]

well calculated move by China. Providing market access is one thing, and marketability is another ball game. When China is capturing the global markets for low end, low technology products, It will be a great achievement for the Bangladeshis to come to China and make a market here. I suspect China will demand Bangladesh to reciprocate for Chinese imports into Bangladesh.
I feel its a move by the Chinese to earn goodwill without giving away anything.
Only time will tell how much Bangladesh will benefit this duty-free imports of Bangladeshi goods into China.

 

[eastwatch]

Brother..you have to thank we "Bharatis" for this..if not for containing us ..why would you think Chinese be so generous towards you and Pakistan?

Anyways.. congratualations and I sincerely hope this would change the lives of millions of people...

Surely the regional geo-politics have played a role to convince China about duty-free access of BD goods. But, I think Zakir's point of view is worth noting. He said that China is looking into the future, because its labour cost has already went up, and its currency value will also increase. These two things will bring up the cost of labour-intensive and low-technology industrial goods in China.

So, the Chinese are looking for a production base near its border, where the govt is friendly, both-way transportation cost is low and labour is cheap. To the Chinese, BD seems to be the country that can satisfy those criteria.

Note the Chinese condition to import that says 40% of the total value must be added inside BD. This condition speaks for itself.

 

[Al-zakir]

Well there goes the theory that Awami party is destroying the Bangladeshi economy. These deals never happen in vacuum. There is definitely hardwork of Bangladeshi ministers and officials behind this

Acknowledge the shrewd diplomacy of Awami dalal here dude

I do not think so. This is China style diplomacy to keep hereditary dalal awami out of bharati circle as China wishing for another Pakistan in Bharatis eastern boarder. See China shove it into hasin's throat where she has no other choice but move toward Mighty China.

Hasina has the chance to use this as political tool to demise BNP. I do not mind if Hasina take Bd-China relation to next level. Let us see how Al use this lifetime oppurtunity for betterment of Bangladesh.

 

[fallstuff]

If that's the political understanding you have then I am glad you have long way to catch up with geo politics and reality.

On the topics,
Regardless, this Chinese goodwill is not for capitalizing political gain (as indians are desperately suggesting and Awami die hard are pushing) but for economic gain of Bangladesh and its people. This opportunity has been served in platter but can Awami regime facilitate and deliver on it? Or Awami regime will turn this another "digital" trademark project?? There are lots of work ahead of us and our enemy around us will only try to put obstacle on the way.

Can’t expect any less from you. My post went way over your head. Let me chew it up a bit more, that will probably help you.

A good deed should not go un-noticed. Hasina should remember that.

These two lines is to do with geo-politics. When Hasina went to China the duty free expectation was around 90 products. They offered way more than that. Hasina should remember this good deed. India still has hidden tax on imports. India talks the talk, but rarely walks the walk. Bangladesh also gets duty free access to EU markets. FYI EU has substantial leverage on Bangladesh. Heard the rumours about the real players of 1/11? This offer also has the potentials to diversify exports. In that light, China should get more favorable considerations from her.

The rest of the post is about BD politics.

She can claim some credit, it happened under her Administration. But in the end she will milk it for all that is worth.

Politically speaking she just threw the kitchen sink at Khaleda Zia. Waiting to see what KZ makes out of this.

Politicians are not known to be modest. In case you didn’t know, politicians do that. She will claim all the credit. To be fair to her, if Hasina is responsible when things go south, in that respect she gets credit when something good happens. Folks like you are BNP base, they do not change. Your politics is pure red meat. However, she wins lot of swing voters with this offer (i.e. kitchen sink) from China.

If you are still having difficulty comprehending, I suggest any 101 level political science book. Any library should have it. Pretty sure Amazon carries a ton of that stuff.

 

[idune]

Politicians are not known to be modest. In case you didn’t know, politicians do that. She will claim all the credit. To be fair to her, if Hasina is responsible when things go south, in that respect she gets credit when something good happens. Folks like you are BNP base, they do not change. Your politics is pure red meat. However, she wins lot of swing voters with this offer (i.e. kitchen sink) from China.

If you are still having difficulty comprehending, I suggest any 101 level political science book. Any library should have it. Pretty sure Amazon carries a ton of that stuff.

Reality in Bangladesh will never reach people like you who still dream on for “kombol” on back of Bangladeshi people. Swing vote you are alluding to are more stunned by Awami looting, killing, raping and abduction than what China is offering. On top of it relentless india submissive activities of Awami regime made Hasina and Awami League a true Indian stooge. She cannot even control Awami thugs and goons from raping and abducting police officer and you expect Hasina has ability to throw a political sink???? Says lot about your typical Awami big mouth and hallow political rhetoric.

As the news broke about Chinese announcement, Hasina already sent her advisors to India to follow up on what Indian PM dictated during SAARC summit – discuss how to provide india with power grid transit and how to make india money in name of loans. Timing of the Chinese announcement and magnanimity of the offer were carefully orchestrated Chinese move to neutralize relentless Awami submissive acts towards india. Sure big mouth Awami chattering class will try to use another deception to capitalize on Chinese goodwill but unfortunately for you india taking all water away for boat, the Awami League symbol, to be afloat.

 

[idune]

One other thing if I may - If Awami regime can use this Chinese offer and increase Bangladesh export volume in tune of several billions then we have something tangible to render opinion on Awami regime motive and performance. Until then political point scoring is pointless.

 

[KillBill]

How much is duty?

I mean by what percentage would the product price get reduced by levying duty charges.

 

[idune]

How much is duty?

I mean by what percentage would the product price get reduced by levying duty charges.

Details are not available yet but what China communicated so far is "duty-free" access. I would assume there will be no duty for these group of products. Remember this is not a FTA type of arrangement where different slabs of duties are involved. This Chinese offer is unilateral Chinese offer or I say gift.

 

[KillBill]

Details are not available yet but what China communicated so far is "duty-free" access. I would assume there will be no duty for these group of products. Remember this is not a FTA type of arrangement where different slabs of duties are involved. This Chinese offer is unilateral Chinese offer or I say gift.

True, I am not questioning their intention, a really good move though.

My question was, does anyone here have any idea about how much is that duty previously? IF its like 2/3 % of the product cost, then this hardly will make any difference.

If I like something and can pay 1$ for that I can as well pay $1.02.

Well if that $1 becomes 80 cents then it makes a huge diff.

 

[idune]

True, I am not questioning their intention, a really good move though.

My question was, does anyone here have any idea about how much is that duty previously? IF its like 2/3 % of the product cost, then this hardly will make any difference.

If I like something and can pay 1$ for that I can as well pay $1.02.

Well if that $1 becomes 80 cents then it makes a huge diff.

Don't have any figure on what percentage of duty currently apply. But duty waiver will add to Bangladeshi competetivness, specially in vast category of products.

 

[Skies]

Why China has offered this generous offer? I guess, they must have some future plans about BD! BD should be mature enough to understand what China wants in future and what is BD's responsibility to China. There is a chance for BD to get over its limitations and dependency by taking help from friend China.

 

[PracticalGuy]

Surely the regional geo-politics have played a role to convince China about duty-free access of BD goods. But, I think Zakir's point of view is worth noting. He said that China is looking into the future, because its labour cost has already went up, and its currency value will also increase. These two things will bring up the cost of labour-intensive and low-technology industrial goods in China.

So, the Chinese are looking for a production base near its border, where the govt is friendly, both-way transportation cost is low and labour is cheap. To the Chinese, BD seems to be the country that can satisfy those criteria.

Note the Chinese condition to import that says 40% of the total value must be added inside BD. This condition speaks for itself.

Atleast ..you were able to see this with sane mind but not with blinded patriotism and unnecessary animosity...thanks for that..
But even the low cost labor thing.. I dont really agree with that too.. because ... China is still 10 to 15 years away from the point where it can feel the effect of increased cost of the labor... and we have to realise here that ..not entire China is "Shangai" or "Bejeing" developed..it still has people in its heartland ..who can be as cheap as Subcontinent people..

 

[below_freezing]

Atleast ..you were able to see this with sane mind but not with blinded patriotism and unnecessary animosity...thanks for that..
But even the low cost labor thing.. I dont really agree with that too.. because ... China is still 10 to 15 years away from the point where it can feel the effect of increased cost of the labor... and we have to realise here that ..not entire China is "Shangai" or "Bejeing" developed..it still has people in its heartland ..who can be as cheap as Subcontinent people..

only tibet is as cheap as subcontinent. i'm from central china myself and to be honest, every central chinese city like Wuhan, Changsha, Chengdu, Chongqing or Zhengzhou has a far higher average GDP/capita than India and far more developed infrastructure. you just don't hear about them because Beijing, Shanghai, Shenzhen, Guangzhou, Dongguan etc. are even more modernized.

this is a great deal for bangladesh as our less competitive industries like textiles are transfered to a cheaper country where they are more competitive.

 

[fallstuff]

Reality in Bangladesh will never reach people like you who still dream on for “kombol” on back of Bangladeshi people. Swing vote you are alluding to are more stunned by Awami looting, killing, raping and abduction than what China is offering. On top of it relentless india submissive activities of Awami regime made Hasina and Awami League a true Indian stooge. She cannot even control Awami thugs and goons from raping and abducting police officer and you expect Hasina has ability to throw a political sink???? Says lot about your typical Awami big mouth and hallow political rhetoric.

As the news broke about Chinese announcement, Hasina already sent her advisors to India to follow up on what Indian PM dictated during SAARC summit – discuss how to provide india with power grid transit and how to make india money in name of loans. Timing of the Chinese announcement and magnanimity of the offer were carefully orchestrated Chinese move to neutralize relentless Awami submissive acts towards india. Sure big mouth Awami chattering class will try to use another deception to capitalize on Chinese goodwill but unfortunately for you india taking all water away for boat, the Awami League symbol, to be afloat.

Like I said bud, you are the base, your views don't change. I don't know how old your are. In the '90s some in right wing world it was spreading like wildfire that U.N will take over America. Well it didn't happen.

It didn't happen in 96-01 in BD when AL was in power. Take a chill pill and calm down.

 

[Communist]

China's generous offer

China, the world's second largest economy, has surprised Bangladesh with a fabulous offer. As a gesture of goodwill, Asia's largest economic powerhouse has offered duty-free entry to about 5000 Bangladesh products to its markets. The commerce ministry officials in Dhaka have described the Chinese offer as 'stunning'. The good side of the Chinese offer is that it has not attached any preconditions for availing the opportunity. Nor has it demanded any reciprocal action on the part of Bangladesh. What is more interesting is that China has offered 120 times more than what Dhaka had sought from Beijing during the Bangladesh-China joint economic commission meeting held in July last year.

While conveying its latest offer to Bangladesh, China has not named the products that it would allow to enter its markets duty-free. Bangladesh officials, however, hope that China would include the main Bangladesh exports, including apparels, leather and leather goods and frozen foods, on the duty-free entry list. The inclusion of apparels, particularly the low-end ones, in the list would mean a great deal for Bangladesh. China, the world's largest apparel exporter, has virtually stopped the production of low-end apparel exports because of its rising cost of labour. Bangladesh enjoys an advantage over its competitors in the global textile markets, particularly in areas of low-end apparels, because of its cheap labour. Thus, if China, a market of more than 1.30 billion people, allows duty-free entry of, at least, low-end apparels to its market, Bangladesh's economy would get a major boost and this would help narrow its huge trade deficit with the largest source of its imports -- nearly 16 per cent of the country's imports come from China while less than 2.0 per cent of its exports go to that country.

There is no denying that Bangladesh desperately needs to expand both its export base and market. Indications are that Bangladeshi apparels may not get duty-free access to the US market as a least developed country under the proposed US act, styled, the New Partnership for Trade Development Act (NPDTA), because of opposition from the possible beneficiary countries in Africa and a section of US textile interest groups. In that event, Bangladesh might lose a major part of its apparel exports to the USA. So, the large Chinese market could be an alternative to US markets for Bangladesh apparels. But for securing trade concessions, particularly at the bilateral level, negotiations by competent and skilled persons having the ability to read the underlying political implications are of great importance in a world where the chances of striking a multilateral trade deal under the auspices of the World Trade Organisation (WTO) is fading fast. This will also be true in the case of the offer made by China.

The generous offer made by China could be the outcome of the recent successful visit of Bangladesh Prime Minister Sheikh Hasina to that country. Now it rests upon the Bangladesh authorities to cash in on the positive and friendly attitude shown by China, for political as well as economic reasons. The government should seek immediately from China the details of its offer, chalk out strategies to deal with the issue and reap the best results for the country.

China's generous offer

See the Chinese heart?