China has announced 97 per cent immunity to duty charges on exported materials from Bangladesh, to manifest noteworthy economic diplomacy in South Asia. This move has been termed as a “major success” aiding the Dhaka-Beijing relationship and making it even healthier, stated diplomatic sources of Bangladesh.
This major decision was taken a month after Bangladeshi Prime Minister Sheikh Hasina and Chinese President Xi Jingping met for discussion and improved bilateral relations between the two countries during the rise of the on-going COVID-19 crisis across the world.
The Ministry of Foreign Affairs of Bangladesh on Friday declared that Chinese taxes would be excluded from 97 per cent of goods including leather products and fisheries.
Mohammed Touhidul Islam, Senior Information Officer of the Ministry of Foreign Affairs said, “As part of our economic diplomacy, Bangladesh had written to China to exempt our export items from tariffs. In response to this China’s State Council Tariff Commission had issued a notification recently. Bangladesh is among the Least Developed Countries (LDCs) and that is why this decision was taken by China.”
Bangladesh imports Chinese goods worth of something close to the US $15 billion but good being exported to China from Bangladesh has been significantly low. The disturbances caused by the US-China trade war have affected Bangladesh’s economy too. This exemption in tax will now be supposedly helpful for Bangladesh’s economy. The country is likely to benefit from this move in terms of boosting the economy.
This decision taken by China will help Bangladesh accelerate the economic condition of the country after the impact of the Coronavirus and will also add background support to the country, along with Vietnam and Chile during the US-China trade war.
“Bangladesh already receives tariff-exemption for 3095 items under the Asia Pacific Trade Agreement (APTA). As a result of the latest announcement, a total of 8256 goods from Bangladesh will be exempted of Chinese tariffs,” added the Senior Information Officer of the Ministry of Foreign Affairs.