China’S RMG imports from Bangladesh drop due to duty barriers
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20 January 2022, Mumbai:
Bangladesh's readymade garment (RMG) exports to China have dropped during the last couple of years as some 53 items still face duty barriers. COVID-19 pandemic and US-China trade have contributed to the downturn, say experts. These two extraneous factors forced Beijing to look inward to use its capacity to meet local demand.
During the first half of the current fiscal, Bangladesh's apparel exports to China dropped 21 percent to $110.39 million from $139.81 million during the corresponding period of last fiscal.
Abdullah Hil RAKIB, Director, BGMEA said, earlier 226 apparel items in HS8 tariff schedule from Bangladesh were used to enjoy duty-free access under the Asia-Pacific Trade Agreement (APTA). And the recent extension of the product coverage by China, published on July 1, 2020, extended the RMG coverage to 299 in HS8 digit.
An analysis shows that Bangladesh exported US$506.5 million worth of garments to China in FY2018-19 and 93 items out of these exports enjoyed duty-free access. These 93 items fetched US$308 million, he said, adding that garments worth $198 million had to face duty on entry to China at varying MFN rates (average 16 percent).
China has reduced its purchase and meets local demand through its own production because of the China-US trade war, says Mohammad Halem, Executive President, BKMEA. Fazlee Shamim Ehsan, Vice President, adds, China's export to the world, including the USA and the European Union, also forced the former country to use its capacity through local consumption.
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