08 apta shahubuddin mohammad - un escap · business opportunities. awareness and private sector...

20‐Apr‐15

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Deepening Private Sector’s Linkage with APTA : A Bangladesh

Perspective

FBCCI/APTA/2015/Private Sector 1

Presented byMir Shahabuddin Mohammad, Secretary

General, FBCCI

20 March 2015, Seoul, Korea20-Apr-15

Key Points

1. Success Story of Bangladesh

2. Economic Profile: Bangladesh

3. Current Negotiation Stage of APTA

4. Bangladesh Trade Relations with APTA

5. Enhance Export Competitiveness of Bangladesh

6. Maximize the Utilization of APTA

7. Capturing Preferential Trade Data

8. Facilitate Electronic Certificate of Origin

9. Private Sector Friendly Road Map of APTA

20-Apr-15FBCCI/APTA/2015/Private Sector 2

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Bangladesh has maintained 6% plus economic growthin the last decade with sound macroeconomicfundamentals, downward edging single digit inflation.

Notable progress in achieving the MillenniumDevelopment Goals (MDGs) and focus now onSustainable Development Goals (SDGs).

Linking Bangladesh to the Asian and EuropeanMarkets, strengthening Asian regional integration andactive persuasion to expand South-South Cooperation,are the major efforts of the country towards achievingthe vision 2021.

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Consistent growth in exports and increase inpublic investment

Sound remittance inflow, strong foreignexchange reserve, rapid export growthcoupled with steady import, bumper cropproduction, stable exchange rate, declininginflation and strong internal demandcontributed a resilient Bangladesh economy.


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A resilient and dynamic private sector inBangladesh with strong growth trend.

New Generation Entrepreneurs investing in newindustries and technologies.

Bangladesh based businesses are looking toexpand into the global markets.

The APTA member countries offer strategicbusiness opportunities.

Awareness and Private Sector Friendly VisionRequired under the APTA framework.


Bangladesh Growth Update (2013-2014)

No Indicator Figure

1. GDP at current market price (US$) 173.95 billion

1350920 (Cr. Tk)

2. GDP Growth (at constant price) 6.12%

3. GDP per capita (US$) 1115

4. GNI Per capita (US$) 1190

Source: BER, EPB, BB


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Bangladesh Economic Update (2013-2014)

No Indicator Figure

1. Export US$ 30.17 billion

2. Import US$ 40.61 billion

3. Foreign Exchange Reserves (9 September 2014)

US$ 21.4 billion

4. Wage Earner’s Remittance US$ 14.22 billion

5. Gross Investment as % of GDP 28.7%

6. Inflation Rate (p to p) 7.04

7. Import Bill cover by export (2013-2014) 74.29%

Source: BER, EPB, BB



Mongolia

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Under APTA, Bangladesh and other LDCs received special tariffconcessions on 577 items. Under this agreement, China has provided100% tariff concessions to 83 items of Bangladesh at 8-digit level andRepublic of Korea has provided 100% tariff concessions to 139 itemsat 10-digit level.

The 4th Round Negotiation commenced in October 2007 which is yetto conclude. Focusing areas of the session is deepening and expandingthe tariff benefits along with other issues such as Non-tariff Barriers,Trade Facilitation, Trade in Services, and Investment.

In the meantime, three Framework Agreements have been signed bythe member countries: 1. Agreement on Trade Facilitation, 2.Agreement on Investment and 3. Agreement on Liberalization ofTrade in Services

Mongolia is in the process of accession to APTA as a new member.


During the Fourth Round, the Participating States agreed toexchange their final offer with coverage of 28% of theirnational tariff lines with an average MoP of 33%.

With the conclusion of the Fourth Round, the coverage ofpreferences of total tariff lines for each Participating Stateamount to 10,868 items (up from 4,270 items at theconclusion of the Third Round) and deepens the average MoPto 32% ( up from the average MoP of 27% at the conclusionof the Third Round).

The LDCs are entitled to additional concessions on 1,249items with an average MoP of 81% on these items under thespecial and differential treatment provision of the APTA


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Present Trade Status of Bangladesh with APTA


-8000

-6000

-4000

-2000

0

2000

4000

6000

8000

China India Korea Laos SriLanka

Export 746.2 456.63 344.81 0.11 26.81Import 7549.94 6034.82 1199.18 3.66 66.66Trade Balance (6803.74) (5578.19) (854.37) (3.55) (39.85)

US

$ m

illi

on

Bangladesh Trade Position with APTA Members FY 2013-2014


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China India Korea Laos Sri Lanka2011-2012 $6,813 $5,238 $1,760 $1 $752012-2013 $6,782 $5,341 $1,546 $3 $632013-2014 $8,296 $6,491 $1,543 $4 $93

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

US

$ M

illi

onFigures in US$ million


Leather10%

Woven Garments

14%

Knitwear8%

Raw Jute29%

Jute Goods21%

Agri Products7%

Chemical Products

2%

Frozen Food9%


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From the charts, we clearly understand that thereis a huge trade imbalance for Bangladesh withhigher imports and lower exports.

In the FY 2013-2014, total exports to APTAcountries were US$1.57 billion and imports wereUS$ 14.85 billion.

Total Exports is 10.6% of total Imports.

Total Trade Volume is increasing but potential forgrowth is much higher.


Barriers to Competitiveness of Bangladeshi Exports

to APTA


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Certification and Standardization Requirements

Lack of Harmonization of Customs Procedures

Restrictions on Transit Visa Difficulties Customs Regulations


More relaxed Rules of Origin within the region Establish a Joint Standard and Testing Centre

within the APTA countries. Liberalization of VISA Process especially for

business persons. Identify priority trade-oriented investment

projects and pursue their implementation. Digitalize Trade and Customs Procedures APTA working Committee on Trade Promotion


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Enhance Trade Competitiveness-How?


Targets Establish a dedicated web portal for Preferential

Trade Data Introduce Electronic Certificate of Origin in each

country Brand Recognition and Joint promotion Joint quality initiatives (preference basis) Explore Trade in Services Grater Energy Cooperation Increase Joint Investment and Intra-APTA Trade Joint Research and Development Facilities


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Plan of Action


Awareness Drive and Workshops on APTAAgreements and Amendments, preferential tradeagreements and rules of origin amongst exporters ,freight forwarders, shipping agents, etc.

Regular Exchange of Information between Govt. andPrivate Sector on the Agreement.

Export Diversification with technical assistance invalue addition to products which are eligible forpreferential market access.

Look for APTA membership expansion to otherstrategic countries in the region.

Harmonization and standardization of documentationbased on international standards.

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Technical and Financial Support for establishing APTAcell in the apex trade bodies of the member countries.

Harmonized implementation of the agreement by customauthorities of each country

Develop mechanism to address implementation progress. Simplification of Rules of Origin for APTA: Emphasis

on Special criteria percentage, Direct consignmentTreatment of packing, referential concessions, etc.

Meetings of the APTA private sector with key officialmeetings of APTA Standing Committees and Ministerialmeetings.


Implementation of regional transit systems based on international standards and practices.

Improvement in customs inspection and control procedures.

Focus on Labour productivity Technology Transfer and Technical-knowhow

Exchange Products Innovation, Design and Packaging Centre Joint Branding, Marketing and Promotion Efforts


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Private Sector Actions

Annual Combined Regional Fair

Combined Monitoring Cell for Resolving NTBs

Mutual recognition of Standards & Practices

Skills and technology exchange through FDI

Investment Road show

Annual APTA Business Forum



The Federation of Bangladesh Chambers of Commerce and Industry

Thank You

08 apta shahubuddin mohammad - un escap · business opportunities. awareness and private sector...

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