Trade Relationship Between Bangladesh and Foreing Country

Topics: Hu Jintao, Wen Jiabao, People's Republic of China Pages: 4 (1324 words) Published: May 12, 2013
Introduction: Bangladesh is third largest trade partner of China in South Asia. But, the bilateral trade between them is highly tilted in favor of Beijing. Bilateral trade reached as high as USD 3.19 billion in 2006, reflecting a growth of 28.5% between 2005 and 2006. China has bolstered its economic aid to Bangladesh to address concerns of trade imbalance; in 2006, Bangladesh's exports to China amounted only about USD 98.8 million. Under the auspices of the Asia-Pacific Free Trade Agreement (AFTA), China removed tariff barriers to 84 types of commodities imported from Bangladesh and is working to reduce tariffs over the trade of jute and textiles, which are Bangladesh's chief domestic products. China has also offered to construct nuclear power plants in Bangladesh to help meet the country's growing energy needs, while also seeking to aid the development of Bangladesh's natural gas resources. China's mainly imports raw materials from Bangladesh like leather, cotton textiles, fish, etc. China's major exports to Bangladesh include textiles, machinery and electronic products, cement, fertilizer, tyre, raw silk, maize, etc.

In 2005, Chinese premier Wen Jiabao visited Bangladesh on an official visit on April 7 and 8. Various agreements were signed during this visit. On transportation side, China and Bangladesh have agreed to start a direct air transport route between Dhaka and Beijing via Kunming. Also Kunming-Chittagong road link through Myanmar is also considered. The Chinese premier readily agreed to constructing the Di-Aluminium Phosphate (DAP) fertilizer factory in Chittagong entirely on concessional lending instead of on supplier's credit.

In 2007, Chinese Assistant Minister of Commerce, Wang Chao visited Bangladesh with the 39-member purchase delegation. It is the biggest purchase delegation ever to Bangladesh with over 10 companies listed in China's top 500 and some of them in world's top 500. Delegation is reported to have purchased Bangladeshi goods...
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