Saudi Arabia looking to sign FTA with Bangladesh

[Black_cats]

Saudi Arabia looking to sign FTA with Bangladesh
Tribune Desk

• Published at 07:08 pm August 21st, 2021

The bilateral trade between Bangladesh and Saudi Arabia stood at $1,019 million in 2019
Saudi Arabia is looking at signing a free trade agreement (FTA) with Bangladesh in a bid to increase bilateral trade, which is considered below its potential.

A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them.

Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

The bilateral trade between Bangladesh and Saudi Arabia stood at $1,019 million in 2019, according to available statistics.

In 2019, Saudi Arabia exported goods worth $638 million to Bangladesh while Bangladesh exported goods worth $381 million to Saudi Arabia.

According to Arab News, Saudi Arabia is looking for more trading partners under FTA as the country aims to increase non-oil exports share in the gross domestic product (GDP).

The kingdom is resuming negotiations for free trade agreements with 11 countries, Okaz paper reported, citing a circular by the Federal of Saudi Chambers (FSC) to all chambers of commerce operating in the kingdom, based on directions of the General Authority for Foreign Trade (GAFT).

The targeted countries are: China, India, Pakistan, Australia, New Zealand, Britain, Indonesia, the Philippines, Bangladesh, Sri Lanka and the US.

While talking to The Dhaka Tribune, a BGMEA leader said that Bangladesh has major potential to increase RMG exports to KSA under market diversification.

Meanwhile, the kingdom aims to export services including transport, distribution, professional and financial services, communication services, postal services as well as express mail, media, hotel, construction and contracting, education and training, travel and tourism, environmental and entertainment.

The Saudi Exports Development Authority (SEDA) announced on Wednesday, it will identify over 120 international tendering opportunities in a number of target countries, mainly covering construction and industrial supplies and infrastructure projects.

A request to comment about the circular was sent to the Federal of Saudi Chambers (FSC), but they did not reply.

Meanwhile, Bangladesh’s Ambassador Dr Mohammad Jabed Patwari, in a meeting with Chairman of the Eastern Chamber of Commerce of Saudi Arabia Dr Abdul Hakim Al Khaldi and its Secretary-General Abdul Rahman Al Wabel on June 30, 2020, laid emphasis on increasing trade with the Kingdom of Saudi Arabia.

He proposed to KSA businessmen to import more readymade garments, handicrafts and leather goods from Bangladesh.

In the meeting, Jabed Patwari asserted that Bangladesh is currently the second-largest exporter of garments in the world and has been manufacturing and exporting quality garments.
Hence, Saudi Arabia can import any type of quality garment from Bangladesh.

Moreover, Patwari also said that Bangladesh’s handicrafts and leather products are of export quality and wished to export these products to the kingdom.

The main products that Saudi Arabia exported to Bangladesh in 2019 are propylene polymers ($209M), nitrogenous fertilizers ($109M) and ethylene polymers ($103M).

During the last 24 years, Saudi Arabian exports to Bangladesh increased at an annualized rate of 12.8%, from $35.3 million in 1995 to $638 million in 2019.

In 2019, Saudi Arabia did not export any services to Bangladesh.

In the same year, the main products that Bangladesh exported to Saudi Arabia were knit T-shirts ($67.7 million), non-knit women's suits ($62.5 million) and felt or coated fabric garments ($44.6 million).

During the last 24 years, Bangladesh’s exports to Saudi Arabia increased at an annualized rate of 17.8%, from $7.44 million in 1995 to $381 million in 2019.

In 2019, Bangladesh also did not export any services to Saudi Arabia.

Comparison

In 2019, Saudi Arabia ranked 33 in the Economic Complexity Index (ECI 0.94), and 26 in total exports ($228B). That same year, Bangladesh ranked 122 in the Economic Complexity Index (ECI -1.01), and 52 in total exports ($47.2B).

Though several South Asian and Southeast Asian countries have proposed to sign FTA with Bangladesh in the past, no decision has been made in this regard as of now.

Saudi Arabia looking to sign FTA with Bangladesh

The bilateral trade between Bangladesh and Saudi Arabia stood at $1,019 million in 2019

www.dhakatribune.com

 

[Bilal9]

Though several South Asian and Southeast Asian countries have proposed to sign FTA with Bangladesh in the past, no decision has been made in this regard as of now.

They are talking about Pakistan of course - first and foremost. We should maybe sign one, keeping in mind not only cotton but other complementary imports, I have spoken about this many times before.

We should not ever sign an FTA with India, they already have lopsided trade with us (to their massive advantage) for the last fifty years. This needs to stop and we should diversify our import sources to include other countries like Pakistan. It makes tons of sense, with the potato, onion and recently, vaccine fiascos we have seen of late from Indian side, they are trying to use this lopsided relationship to actually cause us harm and essentially blackmail us.

When you mix politics with trade like this (in India's case), this foretells a bad precedent and sour taste in Bangladeshi's minds. Indian govt. and traders/manufacturers should also stop blocking Bangladeshi exports to that country on flimsy pretexts, unless they want us to return the favor. This will only get worse as time goes on. Trade cannot keep being lopsided forever.

FTAs with Nepal, Maldives, Bhutan and Sri Lanka can be inked at any time, the volume is rather small and complementary and our products (especially FMCG toiletry, juice and snack products) can find great and profitable markets in these countries, often to our mutual advantage. Exports not only bring in money, they create brand goodwill for the country. Look at Japan and increasingly, Korea and China.

Of much more interesting and important status is our FTA with Indonesia which remains stalled for many unfortunate reasons and misunderstanding. Bangladeshis are fans of Indonesian imports as the quality is high and FMCG toiletry, juice and snack products from that country are Halal as well. Indonesian light engg. products like motorcycles are a bit on the higher priced side (compared to Indian ones) however quality is also higher and have found favorable reactions and adoption in Bangladesh market.

 

[salute]

They are talking about Pakistan of course - first and foremost. We should maybe sign one, keeping in mind not only cotton but other complementary imports, I have spoken about this many times before.

We should not ever sign an FTA with India, they already have lopsided trade with us (to their massive advantage) for the last fifty years. This needs to stop and we should diversify our import sources to include other countries like Pakistan. It makes tons of sense, with the potato, onion and recently, vaccine fiascos we have seen of late from Indian side, they are trying to use this lopsided relationship to actually cause us harm and essentially blackmail us.

When you mix politics with trade like this (in India's case), this foretells a bad precedent and sour taste in Bangladeshi's minds. Indian govt. and traders/manufacturers should also stop blocking Bangladeshi exports to that country on flimsy pretexts, unless they want us to return the favor. This will only get worse as time goes on. Trade cannot keep being lopsided forever.

FTAs with Nepal, Maldives, Bhutan and Sri Lanka can be inked at any time, the volume is rather small and complementary and our products (especially FMCG toiletry, juice and snack products) can find great and profitable markets in these countries, often to our mutual advantage. Exports not only bring in money, they create brand goodwill for the country. Look at Japan and increasingly, Korea and China.

Of much more interesting and important status is our FTA with Indonesia which remains stalled for many unfortunate reasons and misunderstanding. Bangladeshis are fans of Indonesian imports as the quality is high and FMCG toiletry, juice and snack products from that country are Halal as well. Indonesian light engg. products like motorcycles are a bit on the higher priced side (compared to Indian ones) however quality is also higher and have found favorable reactions and adoption in Bangladesh market.

There was no need for you to bring up India. The thread was about Saudi signing FTA with Bangladesh and other countries. Not Bangladesh signing FTA with India.

Since you brought this up, let me tell you, you can't reduce the trade deficit with us as long as you stick to making chaddis for us. Just as India can't cut down its trade deficit with China unless we manufacture what they require. You need to figure out what is required in the export market and make them. Just whining about trade deficit is the mark of loosers.

Bangladesh has no choice but to import from India as it is the closest, cheapest choice available for the imports. Just as, for all your whining about vaccines restrictions, you imported 10 trains worth of oxygen from India. Its just make business sense. I suppose you have none. Oh I am looking forward to our trade surplus with Bangladesh. It would be record of sorts. Can't wait.

 

[bluesky]

Saudi Arabia looking to sign FTA with Bangladesh
Tribune Desk

• Published at 07:08 pm August 21st, 2021

The bilateral trade between Bangladesh and Saudi Arabia stood at $1,019 million in 2019
Saudi Arabia is looking at signing a free trade agreement (FTA) with Bangladesh in a bid to increase bilateral trade, which is considered below its potential.

A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them.

Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

The bilateral trade between Bangladesh and Saudi Arabia stood at $1,019 million in 2019, according to available statistics.

In 2019, Saudi Arabia exported goods worth $638 million to Bangladesh while Bangladesh exported goods worth $381 million to Saudi Arabia.

According to Arab News, Saudi Arabia is looking for more trading partners under FTA as the country aims to increase non-oil exports share in the gross domestic product (GDP).

The kingdom is resuming negotiations for free trade agreements with 11 countries, Okaz paper reported, citing a circular by the Federal of Saudi Chambers (FSC) to all chambers of commerce operating in the kingdom, based on directions of the General Authority for Foreign Trade (GAFT).

The targeted countries are: China, India, Pakistan, Australia, New Zealand, Britain, Indonesia, the Philippines, Bangladesh, Sri Lanka and the US.

While talking to The Dhaka Tribune, a BGMEA leader said that Bangladesh has major potential to increase RMG exports to KSA under market diversification.

Meanwhile, the kingdom aims to export services including transport, distribution, professional and financial services, communication services, postal services as well as express mail, media, hotel, construction and contracting, education and training, travel and tourism, environmental and entertainment.

The Saudi Exports Development Authority (SEDA) announced on Wednesday, it will identify over 120 international tendering opportunities in a number of target countries, mainly covering construction and industrial supplies and infrastructure projects.

A request to comment about the circular was sent to the Federal of Saudi Chambers (FSC), but they did not reply.

Meanwhile, Bangladesh’s Ambassador Dr Mohammad Jabed Patwari, in a meeting with Chairman of the Eastern Chamber of Commerce of Saudi Arabia Dr Abdul Hakim Al Khaldi and its Secretary-General Abdul Rahman Al Wabel on June 30, 2020, laid emphasis on increasing trade with the Kingdom of Saudi Arabia.

He proposed to KSA businessmen to import more readymade garments, handicrafts and leather goods from Bangladesh.

In the meeting, Jabed Patwari asserted that Bangladesh is currently the second-largest exporter of garments in the world and has been manufacturing and exporting quality garments.
Hence, Saudi Arabia can import any type of quality garment from Bangladesh.

Moreover, Patwari also said that Bangladesh’s handicrafts and leather products are of export quality and wished to export these products to the kingdom.

The main products that Saudi Arabia exported to Bangladesh in 2019 are propylene polymers ($209M), nitrogenous fertilizers ($109M) and ethylene polymers ($103M).

During the last 24 years, Saudi Arabian exports to Bangladesh increased at an annualized rate of 12.8%, from $35.3 million in 1995 to $638 million in 2019.

In 2019, Saudi Arabia did not export any services to Bangladesh.

In the same year, the main products that Bangladesh exported to Saudi Arabia were knit T-shirts ($67.7 million), non-knit women's suits ($62.5 million) and felt or coated fabric garments ($44.6 million).

During the last 24 years, Bangladesh’s exports to Saudi Arabia increased at an annualized rate of 17.8%, from $7.44 million in 1995 to $381 million in 2019.

In 2019, Bangladesh also did not export any services to Saudi Arabia.

Comparison

In 2019, Saudi Arabia ranked 33 in the Economic Complexity Index (ECI 0.94), and 26 in total exports ($228B). That same year, Bangladesh ranked 122 in the Economic Complexity Index (ECI -1.01), and 52 in total exports ($47.2B).

Though several South Asian and Southeast Asian countries have proposed to sign FTA with Bangladesh in the past, no decision has been made in this regard as of now.

Saudi Arabia looking to sign FTA with Bangladesh

The bilateral trade between Bangladesh and Saudi Arabia stood at $1,019 million in 2019

www.dhakatribune.com

I hope this news does not end here and the negotiations keep on going in the near future with the goal of signing an FTA deal.

 

[Michael Corleone]

There was no need for you to bring up India. The thread was about Saudi signing FTA with Bangladesh and other countries. Not Bangladesh signing FTA with India.

Since you brought this up, let me tell you, you can't reduce the trade deficit with us as long as you stick to making chaddis for us. Just as India can't cut down its trade deficit with China unless we manufacture what they require. You need to figure out what is required in the export market and make them. Just whining about trade deficit is the mark of loosers.

Bangladesh has no choice but to import from India as it is the closest, cheapest choice available for the imports. Just as, for all your whining about vaccines restrictions, you imported 10 trains worth of oxygen from India. Its just make business sense. I suppose you have none. Oh I am looking forward to our trade surplus with Bangladesh. It would be record of sorts. Can't wait.

Magi

 

[F-6 enthusiast]

Australia and now KSA ? good