NATION BUSINESS REPORT
South Korea has expanded its zero-tariff facility for Bangladeshi products from this year. Under the scheme, 34 additional Bangladeshi items including RMG, ceramic tableware and jute carpet will receive duty-free access to Korean market.
South Korea has already provided duty-free treatment for many items from LDCs. However, their duty-free programme did not cover many items in which Bangladesh enjoy comparative advantage. The Bangladesh government last year submitted a list of items to the Korean authorities for inclusion in the Korean duty-free scheme. The present expansion has accepted 34 items from Bangladesh’s request list.
The most important aspect of the expansion is that as many as 31 categories of RMG products (at 6-digit HS code) will henceforth enjoy zero-tariff entry into the South Korean market. So far, South Korea showed reluctance to open its market for RMG as the country itself is a major producer of apparel. The items that has benefited from the new overture also include ceramic tableware and jute carpet.
It may be mentioned that Bangladeshi export to South Korea increased from US$42 million in FY2005-06 to US$95 million in FY 2007-08. Officials of the Embassy of Bangladesh in Seoul hoped that the duty free facility accorded to RMG products will faster the pace of export growth to South Korea.
Courtesy: nation.ittefaq.com
