Dr Khondaker Golam Moazzem on Chile giving duty-free access to Bangladesh

Dr Khondaker Golam Moazzem on Chile giving duty-free access to Bangladesh, published in Dhaka Tribune on Monday, 28 October 2013.

Chile gives duty-free access
Bangladesh embassy in Geneva has informed the matter on Saturday

Tribune Commerce

The Latin American country Chile will give Bangladeshi products duty-free and quota-free access to its market in a move to boost trade between the two nations.

“The government of Chile is going to give duty-free and quota-free access to the products from the least developed countries including Bangladesh,” said Mahbub Ahmed, Bangladesh’s Commerce Secretary.

He said: “Our embassy in Geneva has informed us about the matter today (Saturday).”

Last year, an official delegation heady by commerce secretary visited Chile to talk about strengthening bilateral trade. The team also visited Brazil, Spain and Maxico at that time.

Mahbub Ahmed believes the duty-free and quota-free offer is the outcome of the visit.

“During our visit to Chile, we met vice president of Chile and the country’s commerce minister to discuss the issue.”

On September 16, the finance ministry of Chile issued a circular which said customs duty had been fixed at 0% on the imported products originated from the least developed countries.

The circular however excluded wheat, wheat flour and sugar from the list.

The decree shall determine the conditions and operational requirements to be met to qualify as originating goods among which, the submission of a certificate of origin at the time of importation.

This decree shall establish the list of countries to which this benefit will apply on the first and second and third year of the establishment of this law, determined by the concentration index of exports in the year immediately preceding this issuance.

On the first year, all those whose concentration index excesses 0.75% will be incorporated, the second year, those whose index is less than or equal to 0.75% and over 0.49% and the third year, the remaining countries.

“Local exporters now export goods including readymade garment, jute and jute goods and now pharmaceutical products to the Latin American countries,” said Commerce Secretary.

He said the country had no export of medicine and pharmaceutical items for last couple of years to the Latin America countries.

Chile exports machinery, plastic products, fruits, lead and chemical products to Bangladesh.

Bangladesh has no embassy in Chile. “It’s our main problem towards improving bilateral trade between our two countries,” said Mahbub Ahmed.

CPD additional research director Dr Khondaker Golam Moazzem told the Dhaka Tribune that the government of Chile already enjoying the trade benefit with 60 countries through bilateral trade agreement. So, Bangladesh would not get desired benefit from the trade concession.

He, however, said the duty free excess to Chile will definitely offer opportunities to Bangladeshi exporters to enter into Latin American markets.