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Change Your Life! |
Korea grants Zero-Tariff access of eighty items from LDCs |
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News |
June 24, 2000
Dhaka, (UNB)- South Korea granted zero-tariff access of 80 items from 48 Least Developed Countries, including Bangladesh, to its market creating immense opportunity to reduce trade gap that has always been in favor of Seoul.
The facility has been made effective retrospectively from January 1, 2000. According to the Korean decision, products eligible for preferential tariffs should be wholly produced or obtained in the exporting country.
When asked whether the Korean decision would help reduce the existing trade imbalance, an official of the Export Promotion Bureau said the new facility should increase Bangladeshi exports to Korean market. “It is totally depending on quality of the Bangladeshi products which lacks very much.”
Referring to Bangladesh’s GSP facility with 28 other countries, the EPB official said: “We have opportunities but we are lacking in its utilization because of the quality of the products.”
“Those who give us these facilities would never comprise on quality because they have to ensure the right of their consumers.”
The official said out of the total 80 items, Bangladesh would be able to introduce only 10 new ones in the export basket to Korea. “Most of these items we import from Korea.”
The potential items are frozen fish, tobacco, electric cables. The new facility has created immense potential for increasing the existing levels of readymade garment export.
Trade deficit between Bangladesh and Korea during the last fiscal year (1998-99) was worth USD 275.66 million. Bangladesh exported only USD 10.99 million and imported products worth about USD 286.65 million.
During the 8 years from the fiscal 1990-91 to 1997-98 Bangladesh trade deficit with Korea has been USD 162.40 million, USD 177.80 million, USD 249.48 million, USD 275.72 million, USD 333.39 million, USD 356.85 million, USD 352.00 million and USD 372.14 million respectively.
Presently Bangladesh mainly exports leather and leather goods, knitwear, woven garments, jute and jute goods.
Bangladesh mainly imports textile machinery, textile accessories, plastic, rubber, paper and some other capital machinery.
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