If Bangladesh becomes successful in signing the Free Trade Agreement (FTA) with Russia and Brazil there will create a market of 50 crore consumers in those countries.
Commerce Minister Tipu Munshi came up with the comment while speaking at a seminar on ‘Fostering Global Free Trade Relations’ at a city hotel on Saturday.
Commonwealth of Independent States and Bangladesh Chambers of Commerce and Industry jointly organised the seminar.
“We are trying our level best to sign the FTA with Russia and Brazil. If the FTA agreement is signed, we will be able to capture a market of over 50 crore consumers,” said the minister.
“And if we can grip this market, it’ll be a big achievement. Brazil wants to import our garments accessories. But the country wants to export beef to our country which is a matter to ponder over. In this regard, we will have to calculate whether we will be benefited,” he further said.
He added that as there are 50 crore customers in Brazil and Russia, Bangladesh has huge export potential in that region.
In August last the commerce minister visited Brazil accompanied by a business delegation with an aim at exploring the South American market for Bangladeshi products.
Currently, Bangladesh faces 30 percent duty on exports to the countries in that region, and after adding tax and others the tariff finally amounts to nearly 60 percent. So, it is difficult for Bangladesh to increase exports to this region.
Moreover, Bangladesh has no consulate in Sao Paulo, the main business hub of Brazil, where over 8,000 Bangladeshis reside.
The government has been working to set up a consulate in Sao Paulo so that Bangladeshis can easily do business there and also for easing shipments.
Tipu Munshi also said after his visiting Brazil in August, the leaders of the South American countries now will review the tariff structures of this region in December.
During the review, Bangladesh will try to place its demand seeking lowering of tariffs or signing of an FTA, he further said.
Munshi said the Brazilian government assured of withdrawing an anti-dumping duty it imposed on Bangladeshi jute and jute goods in 1992.
The South American governments also want to do good business with Bangladesh.
For instance, both Brazil and Argentina want to export beef to Bangladesh as they claim that theirs are better than that of other countries, Munshi added.
Moreover, Brazil wants to open a warehouse in Bangladesh to stockpile cotton as Bangladesh is its second biggest buyer worldwide after China, he added.
