Staff Correspondent

China has announced that it will offer 100% duty-free market access to Bangladesh from this December.

The Chinese embassy in Dhaka confirmed this in a statement released on Monday.

The embassy cited a speech made by Chinese President Xi Jinping on 5 September at the China-Africa Summit, where he announced that all Least Developed Countries (LDCs), with diplomatic ties to China, would receive full duty-free market access.

From 1 December 2024, which marks the anniversary of the establishment of diplomatic relations between Bangladesh and China, Bangladesh will enjoy this new trading privilege. However, products will be subject to a tariff-quota system, where the zero-duty benefit will only apply to goods within the allocated quota. Any goods exceeding the quota will be subject to regular tariffs.

Previously, in 2022, China granted duty-free access to 98% of Bangladeshi products, including 383 new items, such as leather and leather goods. In 2020, 97% of Bangladeshi exports enjoyed duty-free status.

Despite the increased market access, Bangladesh has struggled to capitalise on the opportunity. According to the Export Promotion Bureau (EPB), Bangladesh’s exports to China reached $677 million in the 2022-23 fiscal year, down from $683 million the previous year.

Bangladesh and China engage in significant bilateral trade, totaling $24 billion annually. While Bangladesh exports $677 million worth of goods to China, Chinese exports to Bangladesh amount to $22.9 billion, as per the Ministry of Commerce.

The new development is expected to boost Bangladesh’s export potential and improve the trade balance between the two nations.