The trade potential of Bangladesh in African markets is huge, as well as the chance of African trade in Bangladeshi market is also big. However, the possibility in this matter seems to be unknown, untapped. This was the remark of Naledi Pandor, the international relations and cooperation minister of South Africa in 2021. Two years have passed after that, and now the government has taken initiatives to explore the untapped trade potential. Recently, the Ministry of Trade and Commerce held a meeting to scrutiny the trade potential of Bangladesh in African countries. In addition, they asked the details report over the matter from Tarif Commission.
The senior secretary of Ministry of Trade and Commerce, Tapankanti Ghosh told The Bangladesh Pratidin, “When Bangladesh would come out from LDC, then our challenges would be increased in export sector. Then, we won’t get tariff-free facilities in the market of developed countries anymore. So, we’ve to take our products to new markets and for that we’re examining the trade possibilities in African countries.
According to relevant sources, the Bangladesh Trade and Tariff Commission has sent a report to the Ministry of Trade and Commerce on the potential and challenges of Bangladesh in Africa. According to the report, Bangladesh's exports to the region are very low. According to the latest information, the Tariff Commission says that Bangladesh's total export to 32 African countries is only 420 million US dollars. On the contrary, the amount of import from those countries is more than 10 times, which is about 4, 296 million dollars.
According to the report, South Africa accounts for more than one-fourth of Bangladesh's total exports to Africa, amounting to about USD 131 million. Then the second highest export income of 75 million US dollars comes from Egypt. The third highest export revenue comes from Morocco, amounting to about USD 36 million. More than half of the total export earnings come from these three African countries. Exports of Bangladesh to the remaining 29 countries are in decline. Commerce Ministry officials say that the challenges to growing exports in Africa, which have come up in the report of the Tariff Commission, are not completely described. Among the major challenges, the commission highlighted high tariffs and barriers to bilateral relations. We have asked the Tariff Commission to give a detailed report highlighting the possibility of creating a market for Bangladeshi products in that region by facing these challenges. According to the report, Bangladesh's highest export destination, South Africa, has an average tariff rate of 7.8 percent and a duty on ready-made garments of 41.10 percent; The average tariff in Egypt on all goods is 18.9 percent, on ready-made garments 37.13 percent. The average tariff in Morocco is 14.2 percent for all products and 38.8 percent for ready-made garments. It appears that African countries have higher tariffs on Bangladesh's main export product, manufactured garments, but lower tariffs on other products. That is why the average tariff is also low.
Tapankanti Ghosh said there is little opportunity to expand trade through bilateral agreements with African countries as all countries in that region are members of some economic alliance. Apart from this, the duty on the export of garments products in that region is high. But apart from this we have opportunities to export many other products including medicines, paper or paper products, cement, agricultural products, processed food products, leather products, light engineering, IT. If these products can be exported to the African market, our dependence on ready-made garments will be reduced on the one hand, exports will also diversify on other hand.
@The report was published in Bengali on print and online versions of The Bangladesh Pratidin on July 21 and rewritten in English by Lutful Hoque
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