/Bangladesh Australia Free Trade Agreement

Bangladesh Australia Free Trade Agreement

Bangladesh has had duty-free and quota-free access to the Australian market since 1 July 2003, provided that the rules of origin criteria are met. However, the potential of bilateral trade opportunities between the two countries has not yet been exploited. Bangladesh offers business opportunities for Australian companies operating in the commodities, coal, energy, telecommunications and transport sectors. Last December, Bangladesh`s High Commissioner to Australia said in a letter to the Department of Commerce that annual bilateral trade could reach $5.0 billion once the TIFA agreement is signed and the two sides begin to expand cooperation. In addition, tobacco leaves require a certificate confirming that they are free of Ephestia elutella or that this pest is not present in the country of origin. The total volume of trade between Bangladesh and Australia increased significantly in Bangladesh`s exports to Australia in 2017, reaching $652.04 million, compared to $917.19 million in goods from Australia over the same period. Bangladesh`s exports to Australia consist mainly of ready-to-wear, fabrics, knitwear, textiles, home textiles, leather goods and footwear, processed foods, fish, jute, etc. Australia`s top exports include wheat, vegetables, lentils and pulses, cream and other dairy products, cotton, fertilizers, oilseeds, primary plastic products, machinery and transport equipment, leftovers and some other industrial raw materials. RmG, agriculture, food and education services were the main drivers of this growth. While not a sophisticated and legally binding agreement, the TIFA can help add new tradable items on both sides and facilitate bilateral trade and investment.

Australia has offered to host the constitutive meeting of the JWG in early 2022. “Trade with Australia is growing. We are ready to approve Australian investments in any sector. Tipu Munshi, Bangladesh`s Minister of Trade, and Dan Tehan, Australia`s Minister of Trade, Tourism and Investment, signed the agreement in a virtual ceremony. Bangladeshi products enjoy duty-free and quota-free access to almost all industrialized countries. This access to the world market is further influenced by the fact that Bangladesh`s political regime is by far the best in South Asia for foreign direct investment. Most of Bangladesh`s products enjoy duty-free and quota-free access to the EU, Canada, Australia and Norway. Although limited, Bangladeshi products have already found their place in the markets of Thailand, India and Pakistan with lower tariffs. In this regard, however, talks are ongoing with China, Russia, Malaysia and other neighbouring countries. A comprehensive overview of political, economic, bilateral and regional trade agreements.

Moazzem suggests that the main objective of TIFA should be to strengthen bilateral relations with Australia to promote trade and investment in traditional and non-traditional products/sectors. Used clothing requires a fumigation certificate. Straw or hay used as packaging requires a certificate attesting that it is free of insects and diseases. Services contributed $500 million to total export earnings in 2019-2020, largely due to Bangladesh`s continued demand for Australian education. But the COVID-19 pandemic and associated international travel restrictions have disproportionately affected trade in services. Tourist arrivals increased from 22,500 in 2019 to 4,500 in 2020. Current restrictions on international travel indicate another challenging year for services exports in 2021. Clothing, agriculture, food and educational services were the main drivers of trade growth.

Australia is becoming an important source of raw cotton and lentils for Bangladesh. He went on to write that Australia has shifted its focus beyond its traditional markets such as South Korea, Japan, China and the Association of Southeast Asian Nations (ASEAN) and focused on South Asia to develop trade and investment. Under the agreement, a working group will be set up to meet annually to discuss issues to facilitate bilateral trade and investment by removing bottlenecks. Austrade strongly recommends that you reconfirm them before selling them in Bangladesh. Contains background information, up-to-date economic indicators, Australia`s trade and investment relationship with Bangladesh and its global trade relationship on goods, which are updated twice a year. Austrade provides information, advice and a range of trading services to help Australian businesses reduce the time, costs and risks associated with exporting. This is the second trade-related bilateral platform for Bangladesh, having signed an agreement with the United States on the Trade and Investment Cooperation Forum in November 2013. Trade Minister Tipu Munshi and his counterpart, Australia`s Minister of Trade, Tourism and Investment Dan Tehan, today signed a framework for trade and investment between Bangladesh and Australia. Bangladesh is Australia`s 32nd largest trading partner, accounting for 0.3% of Australia`s total trade in 2019-2020. Total trade in goods and services was $2.6 billion in 2019–20.

The COVID-19 pandemic has disrupted bilateral trade. Australia`s largest exports to Bangladesh are vegetables, scrap metal, copper and cotton. “We expect tiFA to answer all relevant issues, including maintaining DFQF treatment for Bangladesh after the completion of LDCs, trade liberalization, creating an atmosphere conducive to greater trade in services and investment flows,” he added. Another senior Department of Commerce official said Bangladesh would lose duty-free and quota-free access to the Australian market once the country left the poor country`s club in 2026. Australian Minister Tehan said: “The Morrison Government is working to strengthen and expand the trade and investment relationship between Australia and Bangladesh to support jobs and business opportunities in both countries.” Bangladesh and Australia will sign the Trade and Investment Framework Agreement (CIRA), which aims to strengthen bilateral trade by removing barriers and unlocking potential. officials said. The Trade and Investment Framework Agreement (TIFA), the first of its kind between Australia and Bangladesh in the past five decades, is designed to provide a platform for institutionalized economic interactions and open up new trade and investment opportunities between the two countries, according to a press release. Munshi invited Tehan to visit Dhaka. The Australian minister warmly accepted the request and promised to visit Bangladesh next year with a trade and investment delegation. Both sides have completed the work and received approval to sign the framework agreement, possibly in mid-September, they added. Export Processing Zones (EPZs) are export-oriented industrial enclaves that provide infrastructure, facilities, administrative and support services to a wide range of enterprises.

Bangladesh`s highly successful EPZs in Dhaka and Chittagong are now complemented by new EPZ developments and other valuable real estate developments across the country. The Bangladesh Export Processing Zones Authority (BEPZA) is the official body of the Government responsible for promoting, attracting and facilitating foreign investment in export processing zones. The main purpose of an EPZ is to provide special areas where potential investors will find a pleasant investment climate and a location free of cumbersome procedures. Companies from 32 countries have so far invested in existing areas. Industrial establishments in EPZs benefit from incentives such as tax exemptions, duty-free importation of building materials, machinery, office equipment and spare parts, raw materials and finished products, exemption from double taxation, 100% foreign ownership allowed, full repatriation of capital and dividends and much more. Such agreements also have strategic prospects that could go beyond the economic outlook, he noted. As the least developed country, Bangladesh enjoys duty-free and quota-free market access to Australia. But Bangladesh`s annual exports to its 14th largest economy have not yet surpassed billions.

Bangladesh Australia`s bilateral trade has increased six-fold over the past decade, reaching A$2.6 billion last year. Bilateral trade has increased six-fold in the last ten years. In the 2018-2019 fiscal year, Bangladesh exported $804.63 million worth of goods and imported goods worth $596.70 million, according to data from the Ministry of Commerce. Following the abolition of the TIFA, Bangladesh will request Australia to further expand the duty-free and quota-free market access mechanism. The officials said the goal of signing the agreement is to boost trade and investment through bilateral cooperation in mutually agreed areas. Although it is not a legally binding agreement, Tifa can help add new tradable items on both sides and facilitate bilateral trade and investment. The JWG should provide a mechanism to advance the discussion in order to unlock the full potential of trade and investment. Bangladesh and Australia yesterday signed the Trade and Investment Framework Agreement (Tifa) to attract investment and remove barriers to trade between the two countries. The new Austrade experience gives you access to on-demand services to take the next step in your export journey and move forward faster. Bangladesh and Australia sign trade and investment deal Trade Minister Tapan Kanti Ghosh could not be reached for his comment on the upcoming trade deal. .