The bilateral free trade agreement (FTA) between India and European Union (EU) is likely to have a negative impact on Bangladesh’s exports, trade analysts said yesterday.
The remark came out at a meeting on the issue organized by Metropolitan Chamber of Commerce and Industry (MCCI) and Bangladesh Foreign Trade Institute (BFTI) at the MCCI office.
A free trade agreement, essentially, eliminates tariffs, import quotas and preference on most (if not all) goods and services traded between the two parties.
The FTA will aid Indian companies to widen their market into EU, while allowing EU access to India’s 1.2 billion customers. The chief negotiators of India and EU is to meet next week in Brussels ahead of the ministerial level.
This move will indeed hit Bangladesh’s export badly. The EU is the single largest market for Bangladesh’s exports, accounting for 57 percent, or $13.7 billion, of 2011′s export earnings. Through the deal, India will grab the existing market shares of Bangladesh in the EU.
“Bangladesh’s exports to the EU are likely to be affected if the proposed India-EU free trade agreement is signed and apparel items are included in the deal,” said Rokia Afzal Rahman, president of MCCI.
Bangladesh may lose as much as 15 percent or $1.3-1.5 billion in value of the EU market following the deal, according to a study by BFTI.
“There will be erosion of profitability due to loss of a portion of the EU market,” said Md Mozibur Rahman, chief executive officer of BFTI.
However, Commerce Minister GM Quader pointed it is too early to be concerned, “We must be able to compete — we will not remain a LDC forever and enjoy the benefits of cheap labour. We aim to march forward to the mid-income status.”
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) former president Fazlul Hoque and Centre for Policy Dialogue (CPD), Bangladesh Additional Research Director Khandaker Golam Moazzam also spoke on the occasion.
Source: Priyo
Bengalis should wake up and realize that India is not your friend. Never was and never will be. Work with them, maintain peace but NEVER TRUST THEM.
I agree with the comment of Jaz.
It’s almost clear that Bangladesh PM seems to be bent on paying off the debt she had incurred during the 6-years’ hospitality by India. Judging the adamance with which she has been dealing with the opposition may be an eye-opener. But who cares? The people here are so emotion-driven that once properly manipulated they can do anything and go upto any length ignoring the consequence. They have been witnessing how many promises Indian high-ups have made during the past forty two years and how many have been fulfilled. Even when their BSF or FM is across the discussion table in Bangladesh making promises to refrain from killing Bangladeshi people over the border, reports have come that more than one Bangladeshi had been killed by the BSF. And till now our gullible people put trust in the ruling party and believe India will play fair with us. None can wake those up who feign to be sleeping. Woe to us!.
India, as whole do not consider Bangladesh as a friend. Their aim is to keep us a client state. like what they did in Nepal. They are already making key appointments (behind the scene off, course) in the armed forces, BGB, courts and higher government offices. They kept Suranit Sen (the corrupt maestro) as a minister without portfolio, a weird designation. In all, they are already running Bangladesh having Hasina and AL as proxies. We lost our independence again; only this time to a country that is encroaching us in every direction. If our people do not wake up to the reality, we will have a fast decline. Our nationalism needs an uplift. Hasina and Khaleda should go. We need a middle of the road leader like Dr. Yunus.