Bangladesh will enjoy duty free access of nearly 90 items to China and South Korea under the Asia Pacific Trade Agreement (APTA) to increase its exports in the two developed markets in the region, sources said. The latest development is the outcome of an APTA meeting in 2003 during which China offered duty-free access of 59 Bangladeshi goods. The offer was the biggest the country received from any developed country. The duty free access of the items will be finalised at the third round of meeting of the standing committees of the AFTA, formerly known as the Bangkok Agreement. A two-member Bangladesh side will attend the two-day meeting, staring January 18 in Bangkok. Besides, margin of preference (MoP) of other items will be discussed, the sources said. Items of frozen food, garments, engineering products, plastic goods, leather and leathers goods and raw jute will get duty free access to the two countries, where Bangladesh's export volume is small, a senior commerce ministry official told the FE on condition of anonymity. Bangladesh exported goods worth US $ 19 million and $ 25 million in China and South Korea respectively in fiscal 2003-04 fiscal, according to the Export Promotion Bureau. "The country's export performance will be enhanced considerably after the duty free access of these items to this two important and developing Asian markets," he added. He, however, said the export growth in China and South Korea will largely depend on the ability of the private sector. Market analysts are also skeptical about the ability of the local businessmen at initial stage to utilise the opportunity of the duty free access facility for the items excepting the frozen food. But they hope the businessmen will be benefited in future. Refereeing to the export performance of Readymade Garments (RMG) in US and European markets during the early period of quota system and generalised system of preference, they said volume of RMG export was very small at the beginning. The utilisation of the facility has grown over the years. Bangladesh earned $ 5.5 billion through RMG export or about 75 per cent of county's total export income in the last fiscal. Similarly, the local exporters can reap the benefit of the duty free access into China and South Korea gradually through effective strategies, they added. During the second round of APTA meeting last year, Bangladesh got duty free access of Jamdani and Hilsa fish to India. Besides, the country received tariff concession for 33 of its products from India, 30 from Sri Lanka, 20 from South Korea and 18 from China. During the negotiations, Bangladesh gave tariff concession to India for 188 products, Sri Lanka 288 products, South Korea 220 products and China 739 products. Bangladesh joined the APTA in 2003 in a bid to reduce its trade gap with the countries including Asia's three largest economies. China, South Korea, India, Laos and Sri Lanka and Pakistan are the others signatories.
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