Bangladesh eager to sign FTA with ASEAN

Bangladesh is very keen to sign free-trade agreement (FTA) with The Association of Southeast Asian Nations (ASEAN)_ a block of 10 countries. The country is working to make it happen before LDC graduation to make up for loss of preferential trading facility.

Dhaka has targeted the newly industrialized countries of the bloc-close to home-by vast trade potential_ officials say. The Southeast Asian bloc consists of 10 countries Brunei_ Cambodia_ Indonesia_ Laos_ Malaysia_ Myanmar_ the Philippines_ Singapore_ Thailand_ and Vietnam.

The Bangladesh ambassador to Indonesia_ Air Vice Marshal Mohammad Mostafizur Rahman will soon have a meeting with the ASEAN secretariat to discuss about the importance and the perspective of signing FTA between ASEAN and Bangladesh.

At the consultation_ Bangladesh will inform ASEAN officials about the good prospects for ASEAN investment by virtue of a huge South Asian market. Bangladesh will get duty-free quota-free (DFQF) market access till 2029 in various developed nations. The members of the bloc can take it as an opportunity_ and by investing in Bangladesh_ they will also be able to export goods to other nations with DFQF facility.

Also_ it will also be discussed that Bangladesh-ASEAN trade volume may multiply if there could be a joint feasibility study to evaluate the static and dynamic effects of FTA.

According to 2020 data_ the import volume by Bangladesh was worth nearly $7.0 billion from 10 ASEAN states. Meanwhile_ Bangladesh's exports to the bloc members are less than $1.0 billion per year.

The ASEAN officials will also be told_ Bangladesh is a prospective market with a 40 million strong middle class having purchasing power. Also Japan_ India_ South Korea and China have invested a lot in the 100 economic zones establishing by Bangladesh.

However_ signing FTA with ASEAN will be tough for Bangladesh due to high tariff rate. Bangladesh's average tariff is 14.8%_ which has to be lowered to an average of 1 to 2% if it wishes to enter into free-trade pact with the ASEAN_ trade officials say.