Duty-free access of 46 items to spur economy

Duty free access of 46 Bangladeshi products to Indian markethas opened a new window for the country's economy particularly for the garmentsand textile sectors, said leaders of Bangladesh Garment Manufacturers andExporters Association (BGMEA) on Monday.

Addressing a press conference at its conference room theyalso termed it a big 'diplomatic success' and pleaded for immediate effectiveimplementation of the deal.

The leaders of the BGMEA hoped that if the deal isimplemented effectively, the huge trade deficit between Bangladesh and Indiawill shrink soon.

Presently, the trade deficit between the two countriesstands at around $ 3 billion during fiscal year (FY) 2010. The growingbilateral trade deficit with India has risen from $774 million in FY 2000, to$1,933 million in FY 2005.

Bilateral trade also takes place through informal tradebetween the two countries. As a consequence, the actual deficit (formal plusinformal) would be significantly higher. The BGMEA leaders hoped that with tariffs withdrawn, informal bilateraltrade would also be on the decline in coming years.

FBCCI (Federation of Bangladesh Chambers of Commerce andIndustry) president AK Azad, BKMEA (Bangladesh Knitwear Manufacturers andExporters Association) president AKM Selim Osman and BTMEA (Bangladesh TextileMills Association) president Jahangir Alamin spoke at the press meet havingBGMEA president Shafiul Islam Mohiuddin in the chair.

"It is a matter of great hope that the Indian centralgovernment is very cordial about the deal. They have already issued the gazettenotification in this regard," informed BGMEA president.

He hoped that they would gradually be able to grab theIndian market of $ 28 billion as Bangladeshi producers maintain theinternational standard of their products. "We can give products atcompetitive prices," he added. However, he emphasized immediateimplementation of the deal. "Only gazette notification would bring nothingto us. Full-scale implementation of the deal that would benefit the twocountries," he said.

AK Azad said the trade deficit with India is graduallygrowing and the latest decision shows that India felt the necessity of reducingthe trade gap.

He urged the Indian government to give the same facility forat least 100 other exportable products like construction materials andagricultural products.

Jahangir Alamin said they want to see the removal ofnon-tariff

barriers in this process. "We hope there will be nonon-tariff

barriers."

Selim Osman demanded incentive from Bangladesh government onspinning since they got a new market. He also said this is good news for them."We'll be benefited equally from the duty-free access of ourproducts," he said.