Dhaka and Ankara will hold exclusive talks in the Turkish capital on Tuesday on a draft of a bilateral Free Trade Area agreement to be signed by the two countries, prepared by the commerce ministry in Bangladesh. A five-member delegation, headed by additional secretary of the commerce ministry, Monoj Kumar Roy, will visit Ankara from August 26 to 28 to negotiate the proposed FTA deal, a senior commerce ministry official said.
Ahead of formal negotiations, the ministry drafted a template (pre-draft agreement) that mentions 10 prospective areas, under the goods and service sectors, for cooperation under the proposed accord.
The areas include jute, construction, electronic commerce, collaboration in SME development, tourism, energy, fisheries, infrastructure development in the sea ports and waste disposal.
Bangladesh Tariff Commission, under the commerce ministry, recently prepared the template, incorporating the provision of movement of natural persons under the Mode-Four (IV) criteria of the World Trade Organisation, in the proposed FTA.
It also sought special and differential treatment for Bangladeshi products to the Turkish market.
A bilateral FTA leads to gradual reduction of duties on imported goods and encourages elimination of trade restrictions in services to each others’ markets.
‘We are positive about the outcome of the negotiations provided our areas of interest – like movement of natural persons, proposed areas of cooperation and flexibility of commitment, in both investment and duty elimination, by Bangladesh – are endorsed by the latter,’ Monoj told New Age on Saturday.
Monoj described the forthcoming meeting as ‘exploratory’ and said an FTA with Turkey would have a positive impact on the country’s economy, if our major concerns included in the template are addressed and favourable duty-exemption facility is given to our apparel items into the Turkish market.
The move by the commerce ministry was taken after being asked by the Prime Minister’s Office recently, as the prime minister, Sheikh Hasina, during a visit to Turkey in April, 2012, had promised to sign a bilateral FTA with Turkey to boost trade and investment between the two countries.
Trade officials said the template had already been sent to the Turkish authorities.
In the template, Dhaka has proposed to include socio-economic development, strengthening economic competitiveness, up-gradation of human resource development and promotion of sustainable economic development within the broad areas for economic cooperation.
Furthermore, Dhaka has attached importance to progressively liberalise the investment regime, take necessary measures for protection of investment, be granted most-favoured nation treatment, and adoption of measures against any fraudulent activity.
Trade officials said Turkey has large demand for a number of products in which Bangladesh has considerable export capacity.
‘Although Turkey is now importing these products from other countries, a suitable FTA may help divert Turkey’s import away from other countries to Bangladesh,’ the draft mentioned.
Bilateral trade between Bangladesh and Turkey was worth about $835 million in 2012-2013 fiscal, tilted in Dhaka’s favour.
Turkey in September 2010 imposed a safeguard duty at a rate of 17 per cent on apparel imports from least developed countries, including Bangladesh. The imposition of the duty badly affected the export of readymade garment from Bangladesh to Turkey.
‘Of course, the duty on our apparel items must go,’ Monoj said, adding, ‘the proposed FTA can be considered a success if the duty on RMG is lifted.’
Trade officials said Turkey has large demand for jute and jute goods, RMG and frozen food originating from Bangladesh.
-With New Age input
