Days after Galwan valley faceoff, China wooes Bangladesh, provides tariff exemption for 97% of exports from Dhaka

By: |
June 20, 2020 7:09 PM

During the Asian-African Conference which took place this week in Indonesia, Chinese president Xi announced that China will grant duty free market access for Least Developed Countries (LDC) 97 per cent of the tariff lines within a year.

This beneficial market access scheme will be applied only for imports from LDCs that have diplomatic relations with China.

In a bid to woo Bangladesh, China has provided a huge trade boost to the country by announcing tariff exemption for 97 per cent of Bangladeshi products effective from July 1. The decision has come one month after Bangladesh Prime Minister Sheikh Hasina and Chinese President Xi Jinping held a discussion to upgrade their bilateral relations during the COVID-19 pandemic.

The Ministry of Foreign Affairs of Bangladesh announced on Friday that 97 per cent of items would be exempted of Chinese tariffs. As part of the government’s economic diplomacy and the outcome of exchange of letters between Bangladesh and China, Tariff Commission of the Chinese State Council issued a notice recently on granting zero treatment to 97 per cent of tariff products of Bangladesh, the Dhaka Tribune reported, quoting the ministry’s statement.

With this announcement, a total of 8,256 Bangladeshi products will come under the 97 per cent of products that would be exempted from tariff. Currently, 3095 Bangladeshi products enjoy duty-free access to Chinese market under Asia-Pacific Trade Agreement (APTA). With the new announcement, 97 per cent of Bangladeshi products will join this zero-tariff club from July 1 that raised the numbers of Bangladeshi products with zero duty access to Chinese market to 8,256, the report said.

During the Asian-African Conference which took place this week in Indonesia, Chinese president Xi announced that China will grant duty free market access for Least Developed Countries (LDC) 97 per cent of the tariff lines within a year.

This beneficial market access scheme will be applied only for imports from LDCs that have diplomatic relations with China. China’s tariff exemption is expected to help Bangladesh cushion the economic impact of the COVID-19 pandemic.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Purchase fee row: Punjab refuses to pick up the gauntlet thrown by Centre
2Payment deadline for Vivad se Vishwas scheme extended
3DPIIT releases next edition of consolidated FDI policy