Bangladesh government will sign Free Trade Agreement (FTA) with the member states of Southern Common Market (MERCOSUR), said Commerce Minister Tipu Munshi on Wednesday. “We are optimistic about signing a Free Trade Agreement (FTA) with Southern Common Market (MERCOSUR). But we need the consent of MERCOSUR countries like Brazil, Argentina, Paraguay and Uruguay in this regard,” the minister told the media at the Secretariat.
“Brazil, Argentina, Paraguay and Uruguay will hold a meeting and discuss the Bangladesh’s proposal to this end. Later they will inform us about their decision,” he added. “There’s possibility of an increase in export of readymade garment products, tobacco, leather and leather goods if the agreement can bring down the interest rate by 35 percent” the minister told the media.
Munshi had led a 15-member delegation to MERCOSUR member states (Brazil, Argentina, Paraguay, and Uruguay) from August 20-24.
The team included the Bangladesh ambassador to Brazil, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Rubana Huq, BKMEA representatives, pharmaceutical industry representatives, and business leaders of Dhaka Chamber of Commerce.
“Our main goal was to get the support of MERCOSUR members for the FTA and improve commerce and investment,” he said.
The minister said Bangladesh proposed signing the FTA at a seminar in Sao Paola. “The participating countries welcomed the proposal and proposed starting technical discussion,” he said. Munshi said MERCOSUR members will discuss Bangladesh’s proposals in December and take a decision. “We’re optimistic about a positive outcome,” he said.
The minister also requested the government of Brazil to cut the taxation rate or withdraw it. The high tax rate is preventing Bangladesh from exporting the expected amount of RMG products to Brazil. During the visit, he said that they urged investors to invest in Bangladesh and endeavored to draw their attention to various investment-friendly policies we offer.
A Memorandum of Understanding (MoU) was signed between BGMEA and Sao Paulo Chamber of Commerce in Sao Paulo, Brazil, he said. Besides, a decision was taken to sign a MoU between BGMEA and the Brazilian Cotton Producers Association. Brazil assured to consider withdrawing the anti-dumping duty on jute goods into Brazil, he said. A fashion show and Single Country RMG Exhibition, organised by BGMEA, will be held in November in Brazil, he added. A fair will be held in Brazil on November 7-8 for boosting business and investment between Bangladesh and Brazil.
The Uruguayan government has shown interest to sign a MoU with FBCCI and Uruguay’s top chamber. It is keen to sign agreement in visa exemption, Cultural Cooperation Agreement and Agreement on Avoidance of Double Taxation. The commerce minister also sought cooperation of Argentine businessmen and importers alongside the government to pave the way for Bangladeshi products in their country’s market. The minister invited the Argentine businessmen to visit Bangladesh to find out ways for boosting the bilateral trade between the two countries.
