trade
Bangladesh should go for PTA with Mercosur instead of FTA: Argentine minister
Foreign Minister AK Abdul Momen has hoped that Argentina would support Bangladesh's initiative to sign a free trade agreement (FTA) with the South American regional economic organisation Mercosur during its current presidency.
In response, Argentine Minister of Foreign Affairs, International Trade and Worship Santiago Andres Cafiero suggested that Bangladesh pursue a preferential trade agreement (PTA) instead of FTA.
Momen also requested Santiago to consider lowering the existing 35 percent duty imposed by Argentina on readymade garments (RMG) products and withdrawing $0.16 per kg anti-dumping duty on jute bags and sacks from Bangladesh to have greater market access.
A 34-member high-level Argentine delegation, led by the Argentine minister, is paying a two-day state-level visit to Dhaka.
Read more: Bangladesh attractive destination for business, investment: Momen tells Argentine delegation
The non-resident Argentine ambassador to Bangladesh, undersecretary of trade and chief of cabinet to the Argentine foreign minister, are also accompanying the minister.
Momen received his Argentine counterpart this morning at Hazrat Shahjalal International Airport.
Later, Santiago led a delegation to the Brac Foundation. The purpose was to learn from the Brac development programmes and success stories focusing on women's empowerment and rural women's financial inclusion.
Both sides agreed to collaborate to share knowledge on how to bring about financial inclusion in a responsible manner to pull millions of vulnerable women in rural and urban areas of Argentina out of poverty.
Read More: Reopening embassy in Dhaka a stepping stone to build better ties with Bangladesh: Argentina
Santiago had a meeting with Momen at state guest house Jamuna this evening. Momen expressed gratitude to the Argentine government for reopening its diplomatic mission in Dhaka.
The foreign minister showed interest in wider cooperation between Bangladesh and Argentina in agriculture, agro-processing, cattle and poultry industries, biotechnology, pharmaceuticals, the ICT sector, heavy and light machinery and equipment.
Santiago and Momen emphasised the importance of enhancing close collaboration to increase bilateral trade and investment.
Read More: Argentina’s foreign minister in Dhaka to reopen embassy, deepen ties.
EU slaps sanctions on top Russia officials, banks, trade
The European Union agreed Saturday to impose new sanctions on Russia over its invasion of Ukraine targeting more officials and organizations accused of supporting the war, spreading propaganda or supplying drones, as well as restricting trade on products that could be used by the armed forces.
The EU’s Swedish presidency said the sanctions "are directed at military and political decision-makers, companies supporting or working within the Russian military industry, and commanders in the Wagner Group. Transactions with some of Russia’s largest banks are also prohibited.”
Asset freezes were slapped on three more Russian banks and seven Iranian “entities” — companies, agencies, political parties or other organizations — that manufacture military drones, which the EU suspects have been used by Russia during the war.
The new measures, proposed by the EU’s executive branch three weeks ago, were only adopted after much internal wrangling over their exact make-up, and made public one day after the first anniversary of Russia’s invasion of Ukraine — the intended target date.
The delay, which was minor but symbolically important, is yet more evidence of how difficult it has become for the 27-nation bloc to identify new targets for restrictive measures that are acceptable to all member nations.
Read More: Nearly 1 million asylum requests in the EU in 2022
The sanctions are meant to undermine Russia’s economy and drain funds for its war effort, but they are also increasingly inflicting pain on European economies already hit by high inflation and energy prices and still suffering from the effects of the COVID-19 pandemic.
Before this latest round of measures, the EU had already targeted almost 1,400 Russian officials, including President Vladimir Putin, government ministers, lawmakers and oligarchs believed loyal to the Kremlin, but also officers believed responsible for war crimes or targeting civilian infrastructure.
The bloc had also frozen the assets of more than 170 organizations, ranging from political parties and paramilitary groups to banks, private companies and media outlets accused of spreading pro-Kremlin propaganda.
Russia’s energy sector was hit, too — notably oil and coal — and the bloc, through its own measures and political decisions combined with retaliation from Moscow, was rapidly weaned off its dependence on Russian natural gas.
Ukrainian President Volodymyr Zelenskyy welcomed the new package in his nightly address on Saturday.
“Sanctions will continue to be introduced so that nothing remains of the potential of Russian aggression,” he said.
“There are new sanctions steps in the 10th package, powerful ones, against the defense industry and the financial sector of the terrorist state and against the propagandists who drowned Russian society in lies and are trying to spread their lies onto the whole world,” Zelenskyy said.
ICCB workshop focuses on innovations in trade finance
In the context of the ongoing global financial and economic crisis, banks and businesses need to take stringent measures to ensure that their sales transactions are watertight.
Open account and International factoring are being adopted by most countries around the world for better and smoother trade finance.
Factoring in South Asia as a region in general and Bangladesh, in particular, has still been very limited, whereas factoring in most other regions of the world has exploded with the shift towards open account trade, said ICC Bangladesh Vice President A. K. Azad at the Certificate Award Ceremony of ICC Bangladesh Workshop on Factoring & Open Account for International Trade Finance.
Bangladesh has made a strong economic recovery from the COVID-19 pandemic. The export income is increasing and is successfully advancing overcoming all hurdles. During FY22, the RMG export was $42.62 billion, which is about 82 per cent of the total export of $52.08 billion. The Country is poised to overtake China in garments export to the EU. Bangladesh’s share in the global RMG market is only 6.50% as against China’s 32.21%, he added.
Azad mentioned that BGMEA is targeting to export US$100 billion worth of garment items by 2030. Besides, there is immense potential for Bangladesh to increase its export of leather goods, pharmaceuticals, plastic products and other products.
Azad observed that Bangladesh Bank’s circular on ‘conditional open account transactions’ is a good initiative. It is now more than two years that open account transactions have been allowed by Bangladesh. We would suggest undertaking studies on the impact of this decision as well as considering the possibility of allowing conditional open account for import as well. ICC Bangladesh can work together with Bangladesh Bank in this regard, he said,
“Bangladesh Government is promoting digitization to make Smart Bangladesh. Therefore, we would suggest appropriate policy changes should be made by Bangladesh Bank to digitize international trade. We from ICC Bangladesh will be delighted to support Bangladesh Bank in implementing DSI developed by ICC HQ.” Azad said.
Ahmed Jamal, Deputy Governor of Bangladesh Bank in his keynote speech mentioned that Bangladesh Bank after huge exercises brought radical changes in foreign trade transactions by the issuance of FE Circular No. 25 on June 30, 2020. Bangladesh Bank is always committed to providing policy support to our exporters and importers. Given the ongoing situation due to the Covid-19 pandemic, Bangladesh Bank extended policy supports to international trade by ways of (a) extending repatriation of export proceeds, (b) extension of usance periods of import payments including back-to-back LCs, (c) EDF loan repayment extended to 360 days, (d) refinancing from EDF for normal back to back LCs and so on, Deputy Governor added.
He observed even during the pandemic situation we are being visited by several international financing institutes. This indicates that we are growing despite different odds. I am sure external financiers will benefit from trade transactions in Bangladesh. He requested the exporters to use the policy to protect their payments.
Dr Md. Akhtaruzzaman, Director General, Bangladesh Institute of Bank Management (BIBM) & Peter Mourly, Secretary General, Factor Chain International, The Netherlands addressed the inaugural session and ICC Bangladesh Secretary General Ataur Rahman delivered the welcome address.
In the workshop, a panel discussion was held. The panel discussion was moderated by Muhammad A. (Rumee) Ali and the keynote speaker was Ahmed Jamal, Deputy Governor of Bangladesh Bank.
The panelists were: Md Fazlul Hoque, Managing Director, Plummy Fashions Ltd.; Mohammad Hatem, Executive President, BKMEA & Managing Director, MB Knit Fashion Ltd.; Muhammad Mohsin Reza, General Manager, Supply Chain of SKF Pharmaceuticals Limited; Naser Ezaz Bijoy, President, Foreign Investors’ Chamber of Commerce & Industry (FICCI) and Chief Executive Officer, Standard Chartered Bank; Ahmed Shaheen, Additional Managing Director, Eastern Bank Limited; Peter Mulroy, Secretary General, Factor Chain International (FCI) and Dr Prashanta Kumar Banerjee, Professor, Bangladesh Institute of Bank Management (BIBM).
A total of 131 participants including officials of the Ministry of Commerce and Bangladesh Bank, 96 participants from 31 banks and 32 participants from 24 companies attended the day-long workshop.
Read more: Accelerate gas exploration to overcome energy crisis: ICCB
Dhaka wants removal of tariff, non-tariff barriers to reduce trade deficit with Delhi
Bangladesh has expressed satisfaction with increasing trade with India and emphasised removing all tariff and non-tariff barriers to reduce the trade deficit.
At the foreign office consultation (FOC) Wednesday, Bangladesh sought India's cooperation in resolving the pending issues, especially, concluding water-sharing treaties, including Teesta.
Bangladesh also emphasised maintaining a predictable flow of commodities from India for a stable market in Bangladesh.
Foreign Secretary Masud Bin Momen and Foreign Secretary of India Vinay Mohan Kwatra led their respective delegations at the FOC held at the Foreign Service Academy.
Masud congratulated India for taking the presidency of the G20 and thanked it for inviting Bangladesh as a "guest country."
The Indian foreign secretary said they included Bangladesh as a guest country for sharing the experience of the growth trajectory of Bangladesh achieved under the "visionary leadership" of Prime Minister Sheikh Hasina with other members of G20.
Kwatra described Bangladesh as India's trusted friend and reiterated that India is "committed to working with Bangladesh in the coming days."
He said Bangladesh is one of the most important pillars towards India's "Neighbourhood First Policy" and a key partner to its "Act East Policy."
He also emphasised exploring and working together in emerging sectors for cooperation.
Both the foreign secretaries expressed satisfaction with the "excellent bilateral relationship" that exists between the two countries.
Read more: India to help Bangladesh import hydropower from Nepal, Bhutan: FS
Prime Bank receives $50m from IFC to support trade, forex liquidity needs in Bangladesh
To support export and import-based businesses in coping with global uncertainties induced by the Covid-19 pandemic, International Finance Corporation (IFC) is providing $50 million to Prime Bank Limited in Bangladesh.
This IFC funding will support working capital, trade finance, and foreign exchange liquidity needs of export and import based entities borrowing through Prime Bank’s Offshore Banking unit.
The financing package is part of IFC’s “Fast Track Covid-19 Facility” – a package designed to support countries and private sectors to cope with the impacts of the pandemic under the Working Capital Solutions (WCS) program, according to a media release issued on Monday.
Read More: IFC giving $32.5 million to ensure food security in Bangladesh
IFC has provided a total of $310 million in working capital solutions to banks in Bangladesh and liquidity support to companies since the beginning of the pandemic, including this latest funding to Prime Bank.
Since 2010, IFC has invested over $3.6 billion to help the private sector in Bangladesh grow.This IFC engagement with Prime Bank will also be supported by the International Development Association’s Private Sector Window Blended Finance Facility.
Commercial banks are the largest providers of working capital and foreign exchange trade finance support to manufacturing and infrastructure businesses, key drivers of Bangladesh’s economy.Unexpected turbulence in the global markets has restrained foreign exchange liquidity in the market.
Read More: IFC pledges $6 billion to tackle food insecurity.
With this funding, Prime Bank is expected to extend loans to its export and import-based customers, helping keep businesses afloat, resume exports and preserve jobs.
“IFC’s support reflect resilience of Bangladesh economy and confidence in Prime Bank. IFC has been a valuable partner of Prime Bank since 2014 and this relationship helps us to significantly expand our OBU business. We are really thankful to IFC for its continued support. This fresh funding of USD 50 million targeted for SME clients will help us to grow SME portfolio of the bank,” said Managing Director & CEO of Prime Bank, Hassan O. Rashid.
“It is clear the impacts of Covid-19 are still being felt by a number of businesses in Bangladesh’s key industries, effectively constraining their operating ability,” said Allen Forlemu, Regional Industry Director, Financial Institutions Group, IFC. “This funding package is designed specifically to help ensure businesses in Bangladesh can continue to trade and have access to working capital, helping them maintain operations and preserve jobs. Small and medium-sized businesses, which are the backbone of the country, and have been particularly impacted by the pandemic, are expected to benefit the most from this IFC funding.”
Read More: IFC-led PaCT helped factories cut carbon and water footprints: BGMEA.
Eswatini wants trade, investment promotion with Bangladesh
State Minister for Foreign Affairs Md Shahriar Alam had bilateral discussions with Eswatinian Minister of Commerce, Industry and Trade Manqoba Khumalo in Mbabane Tuesday.
Manqoba Khumalo, during the meeting, underlined the need for trade and investment promotion between Bangladesh and Eswatini.
Mentioning textiles and agriculture as major areas of potential cooperation, he sought investment from Bangladeshi investors in these areas in Eswatini.
The Bangladeshi investors can reach out to other member states of SADC from Eswatini to export their products, said the minister.
Shahriar said Bangladesh is also interested in establishing cooperation with Eswatini in the agriculture and textile sectors.
Highlighting the Vision 2041 of the government for transforming Bangladesh as a developed and prosperous nation, he informed the Eswatini side about the recent infrastructural development, growth of manufacturing industries as well as other emerging sectors here.
Underlying the need for identifying potential sectors of trade and business as well as the exchange of visits among businessmen, the state minister reaffirmed Bangladesh's commitment to take the bilateral and economic relations with Eswatini to newer heights.
He invited the Eswatinian businessmen to trade and invest in Bangladesh.
The representatives of the investment promotion authority of Eswatini present at the meeting said Bangladesh businessmen can reach out to different member states of COMESA, SACU and SADC by establishing business in Eswatini.
Also, the Eswatinian side said joint ventures may be established in sugar, food items, cotton, contract farming, construction and livestock, IT and ICT sectors.
They mentioned various facilities offered by the Eswatinian government to the investors.
Read more: Bangladesh, Eswatini can start cooperation in food security areas: Shahriar
Bangladesh, South Africa discuss ways to boost trade and investment
State Minister for Foreign Affairs Md Shahriar Alam has said Bangladesh and South Africa have common socio-economic development objectives and there are huge potentials to boost trade and investment.
He observed that visa waiver agreement for diplomatic and official passport holders and agreement on avoidance of double taxation between Bangladesh and South Africa will facilitate contacts and increase trade and investment between the two countries.
The state minister had bilateral talks with Deputy Foreign Minister of South Africa Candith Mashego Dlamini in Pretoria on February 3 and discussed areas of cooperation.
Referring to his meeting with the Business Unity South Africa which took place on Thursday, Shahriar Alam said the organization has shown interest in working with Bangladeshi chambers.
Read More: Shahriar inaugurates 'Made in Bangladesh' exhibition in Pretoria
He expressed hope that with mutual efforts, bilateral trade between Bangladesh and South Africa may be enhanced to one billion dollars.
The state minister proposed formation of a Bangladesh-South Africa business council comprising different chamber officials and businessmen to assess potentials and discuss business matters.
The Deputy Foreign Minister of South Africa Dlamini referred to the recent high level visits that took place between Bangladesh and South Africa.
Stock market gained over Tk 10,185 crore capital last week
The stock market has passed the 4th week of the current month with a capital gain of Tk 10,185 crore in four days, data analysis of the capital market has revealed.
The capital of Dhaka Stock Exchange (DSE) was Tk 7.56 lakh crore at the beginning of trading on the first working day of last week. On the last day, after transaction on Thursday (January 26, 2023), the capital stood at Tk 7.67 lakh crores.
In other words, the capital has increased by Tk 10185 crore. It increased by Tk 2149 crore in the previous week. The investors' capital increased in the market for two consecutive weeks.
In the past week (January 22 to 26), trading was done on five working days. The first trading day marked a fall in the index, followed by four consecutive trading days during which the index rose from Monday to Thursday.
Also Read: BSEC forms Shariah Advisory Council for stock market
During this period, a total of 387 shares and units were traded in DSE. Among them, 63 companies' share prices increased, those of 119 decreased and 205 unchanged.
Among the companies traded in the previous week, 114 rose, 68 fell and 205 remained unchanged. The number of companies reducing prices has increased compared to the previous week.
However, the main index of DSE increased by 30 points from the previous week to 6,296 points in the outgoing week as the share prices of several companies increased.
Among the other two indexes of DSE, the DSES index increased by 6 points to 1,374 points and the DS-30 index increased by 22 points to 2,230 points from the previous week.
Read More: ‘Greed for short-term gains ruining investors’ confidence in stock markets’
Although the index has increased, the volume of transactions has decreased. In the last week, the total transaction in DSE was Tk 3050 crores, which was traded in the previous week for Tk 3850 crore. That is, Tk 800 crore worth of transactions have decreased; as a percentage it has decreased by 20.78 percent.
The Chittagong Stock Exchange (CSE), another capital market of the country, was also traded in the same condition.
In the last week, the overall index of CSE increased by 89 points to 18565 points. Tk 63.19 crores were traded during this time, which was traded in the previous week for Tk 104.55 crore.
Among the traded companies, the share prices of 61 companies increased, 83 decreased and 134 remained unchanged.
Read More: Finance minister directs regulators to boost investment in stock market
Bangladesh-India trade through Hili land port suspended due to holiday
Export-import activities between Bangladesh and India through the Hili land port in Dinajpur is suspended since this morning on the occasion of India’s Republic Day.
"Trade between the two countries remained suspended since Thursday morning as India is observing its 74th Republic Day which is marked as a national holiday,” Hili Customs C&F Agents Association President Abdur Rahman Liton said.
Read more: BGMEA calls on Sedex to promote encouraging stories of Bangladesh's RMG industry
"The trade activities will remain closed for Friday due to the weekly holiday. All activities of the land port will resume from Saturday (January 28),” he added.
MD Badiuzzaman, in-charge of Hili Immigration check post, said the movement of travellers through the land port will continue as usual.
BGMEA eyes expanding RMG exports to Japan
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has said the country's apparel industry has continued its efforts to explore new and promising markets like Japan and seize every available opportunity.
BGMEA President Faruque Hassan said: "We have been carrying out apparel diplomacy and trade missions to find new opportunities for Bangladesh's RMG industry and realise untapped potential."
Faruque made the observations while exchanging views with Hajime Suzuki, chief director of International Sales and Marketing at RX Japan, in Dhaka Monday (January 23, 2023). Kurena Watabe of RX Japan was also present.
Read: RMG manufacturer CKDL partners with Singapore firm to ensure workers' financial wellness
RX Japan is a leading exhibition organiser in Japan.
The two sides discussed possible collaboration between BGMEA and RX Japan to initiate trade communication between businessmen in Bangladesh and Japan, particularly those involved in the fashion industry.
Bangladeshi businessmen would be able to showcase strengths and capabilities by participating in apparel exhibitions in Japan while Japanese buyers and investors would get the opportunity to explore their trade potential in Bangladesh, they said.
Read more: BGMEA, Jetro want to expand Japan-Bangladesh trade