Dhaka will strike a free trade area deal with Gulf Cooperation Council, a customs union of six Arab states, provided that the oil rich nations offer preferential tariff facilities for major Bangladeshi exportable goods. The planned FTA must cover trade in goods, trade in services and investment, an inter-ministerial meeting at the commerce ministry past week decided in principle. The meeting was held after a formal offer had been made from the GCC as the Council showed its immense interest to strike an FTA with Bangladesh due to its thriving economic prospects, a trade official at the commerce ministry said.
‘The economy of Gulf Cooperation Council or GCC is 10 times bigger than Bangladesh. So, an FTA if signed with the oil rich nations will be fruitful for our economy,’ a senior commerce ministry official told New Age on Friday.
He, however, said Dhaka would expect duty-free market access for major Bangladeshi exportable goods, including readymade garment, in the GCC market before launching formal talks on FTA between Bangladesh and GCC.
Manpower export under the services sector will have a chance to be boosted in the gulf countries under the proposed FTA, the official said.
The meeting discussed elaborately a study report of Bangladesh Tariff Commission on the possible outcome of such a trade pact.
The meeting presided over by commerce secretary Hedayetullah Al Mamoon was attended by representatives from ministries like foreign and industries and senior officials from Bangladesh Tariff Commission, National Board of Revenue and Bangladesh Foreign Trade Institute.
The report on FTA said Bangladesh might take initiative to sign an FTA if the country gets opportunity to obtain duty- and quota-free access or substantial tariff preference for most of its exportable products, manage longer implementation period for liberalisation of trade in goods, comparatively shorter product coverage and flexible preferential rules of origin, and longer implementation period for liberalisation of trade in services and investment.
The report also said GCC has a market of $11 billion for RMG products. Bangladesh may grab considerable size of the huge market of the Arab economies under the FTA provided flexible and preferential facilities are offered.
The GCC was formed in May 1981 and an FTA between the member countries of the GCC was signed in 1983.
The commerce official said they would soon communicate with the GCC about their positive stance on striking FTA. The communication would certainly highlight the preferences Bangladesh desire to get under the proposed deal, he added.
Commerce ministry recently held a bilateral FTA talks with Turkey as the official believes Bangladesh should strike at least one or two FTAs with countries where its exportable products have competitive advantage and minimal risks on the economy.
‘In that case, Arab states could be a good choice for FTA,’ a trade official said.
-With New Age input
