ASSIGNMENT 03

ON

a) International Trade Statistics Of Bangladesh

b) Picture of World Trade

Submitted By:
Jadab Chandra Sarker
Sec-A, Roll- 57
11th Batch
Department of Management Studies
University Of Dhaka

Submitted To :
Dr. Syed Golam Maola
Professor
Department of Management Studies
University Of Dhaka
Source: Bangladesh Economic Review 2007
Table 1 indicates that during last 7 years total trade has registered double digit
growth except in FY 2001/02. This has resulted in an increase of trade Trade-GDP ratio
reflecting enhanced importance of foreign trade in the economy and the effort of the
government to integrate the economy to multi-lateral trading system.
The major five items exported are Woven garments, Knitwear, Frozen food, Jute
goods and Leather. In 2005-06 these items exported 4083.82, 3816.98, 459.11, 361.03
and 257.27 million US $ respectively.
The five major imported items are Food products, Crude Petroleum & petroleum
products, Chemical & fertilizer, Raw Materials & Accessories of RMG and Capital
Machinery. In 2005-06 these items earned 1449.34, 2126.65, 969.01, 3928.89 and
1630.74 million US $ respectively.

Five key measures/initiative/reforms undertaking to liberalize and facilitate trade

1• Simplification of import procedures in line with the commitment with WTO
system
2• Duty-free import of Machineries and intermediate goods
3• The total number restricted items for importing have been brought down to 25
from 62 in Import Policy order 2006-09.
4• Export Policy of 2006-09 has provided for continuation of the provision for duty
drawback and cash incentive for import.
Bangladesh is having investment potential in almost all sectors but recent trend shows
that the under mentioned 5 (Five) major sectors are (100% foreign owned or under Joint-
Venture) are taking the lead the share of them are as follows:
1• Services-74.84% (Telecom, Power, Oil, Gas & Hospitals);
2• Textiles-8.96%;
3• Engineering 8.81%;
 4• Agro based Industries-3.20%
5• Chemicals- 1.61%;
Reforms Measures undertaken are:
1• A Permanent Law Reform commission set up to ensure greater transparency and
predictability in the way rules and regulation are made;
2• The Securities and Exchange Commission established in 1993 to oversee and
regulate the operation of the stock market;
3• Power generation, Air Cargo, Telecommunication, Air-transportation, Railway etc.
are allowed in the private sector investment;
4• BOI would set up Special Economic Zone (SEZ) in the country;
5• The Company Law-1913 modernized in 1994 and further modernization is in
process;

5 (Five) major Sectors where FDI is encouraging:

1• Energy and Power generation;
2• Mineral – Coal, Gas, Oil exploration;
3• Ports, Highways, Bridges;
4• Pharmaceuticals;
5• Textiles;

Export in Bangladesh
2. Introduction: Bangladesh emerged as an independent country in
1971. She entered
into International Trade actively since 1972. In the early years of
independence the gap
between Import and Export was very wide. This gap started to
decrease from 1980s when
Bangladesh adopted liberal trade policy consistent with the emerging
trend of the market
economy. Extensive reform programs have been implemented in trade
regimes during the
last two decades. The prime objective of the trade policy of
Bangladesh is to strengthen
the economy. For achieving this objective Bangladesh has adopted
export-based
development strategy. As export sector is the main sources of hard-
earned foreign
currency of Bangladesh, Government has taken all the initiatives for
overall development
of the sector.
3. Export Policy: For export promotion and development Bangladesh
has been pursuing
periodic Export Policy from 1980. In the first half of 80s she pursued
one- year export
policies in the first half of 80s and two-year policies in the last half of
the same decades.
Since then five- year export policies were formulated and
implemented. After the expiry
of the tenure of five-year policy government announced three –year
Export Policy. On
going Export Policy is for the period 2003-2009. These policies are
consistent with the
agreement under Uruguay Round Accord, WTO and the principles of
market economy.
These are also maintaining favorable balance between exports and
imports of the country.
4. Export basket: In the export basket of Bangladesh there are
primary commodities and
industrial goods. Frozen food, tea, agricultural product, raw jute, etc.
are the primary
product for export. On the other-hand, readymade garments (Oven
garments and
knitwear), leather, jute goods, fertilizer, and chemical products,
footwear, ceramics
product, engineering products, petroleum by-products and handicrafts
are the major
industrial export goods. The product-wise export earnings from major
exports are shown
below:

5. Market Share: The major countries to which Bangladesh are

exporting are USA,
Germany, UK, France, Belgium, Italy, Netherlands, Canada, and Japan.
The USA is the
main destination of our export commodities which is 28.79% of the
total exports. The
second and third positions are held by Germany and UK which
constitute 16.76% and
9.96% respectively. The principle items exported to these countries are
readymade
garments, frozen foods and home textiles. The country-wise exports
figures are shown
below:

6.Trend of Export Earnings: The exports of Bangladesh have been

experiencing a
steady rise since the late 80s of which apparels constitute
approximately 75% of the total
exports. Other items include frozen foods, jute & jute products, leather
& leather
products, handicrafts, vegetables, chemical products etc. Major export
markets for
Bangladeshi exporters are North America (33%) and EU (52%) while
other regions
constitute the rest. In Fiscal Year 2006-07, total exports earnings of
Bangladesh exceeded
US$ 12 billion. The trend of Bangladeshi exports from FY 1972-72 to
2006-07 iis shown
below.
8.Export Control: Rules, Regulation, and Controlling Authority:
In Bangladesh all
trading activities are regulated by the Ministry of Commerce of the
Government of
Bangladesh under The Imports and Exports (Control), Act 1950. The
Export Policy under
the aforementioned Act is issued every three years by the Ministry of
Commerce on
behalf of the government. However, the Ministry can impose a ban or
attach conditions,
in the public interest, on an exportable at any time. Moreover, the
Ministry of Commerce,
through its office of the Chief Controller of Imports & Exports (CCI&E) is
also
responsible for issuance of Export Registration and/or Permits to the
intending exporters.
On the other hand, any tariff/tax related issues are determined by the
National Board of
Revenue (NBR),an entity under the Ministry of Finance.Bangladesh
Customs a
department of NBR is the enforcement agency of the Eexport Policy.
9. Export Control: Prohibitions and Restrictions: According to the
current Export
Policy, 2006-2009, the government has prohibited or imposed
conditions on the exports
of following products. (Please visit www.mincom.gov.bd for full text of
the Export
Policy and other information)
A. Prohibited Products
i) All petroleum and petroleum products except naphtha, furnace oil,
lubricant oil
and bitumen.
ii) Jute and `Shan’ seeds
iii) Wheat
iv) Any kind of live animal, animal organs or hide/ skin of wild animals.
v) Fire arms, ammunition and related materials.
.
10. Export Control: Bangladesh follows a liberal trade policy in
respect of Import and
Export. For obvious reasons, export is a priority sector of Bangladesh.
Government has
taken many measures for export development. There is a handsome
incentive package for
the exporters. But even export sector is not free from control and
monitoring. The
Following measures have established necessary control over the
export trade in
Bangladesh:
Licensing the exporters.
Quality inspection of product.
Physical examination before shipment.
Security check by using scanning machine at ports
Constant Intelligence and monitoring by the concerned Government
agencies
Observing ISPS code by port authority.
Application of penal provisions for violation of Rules and Regulations.
Installation of heavy-duty scanners in the ports(under construction).
. Proposal/Suggestion: Followings are some recommendations on
how we could
overcome the hurdles faced by the developing countries in enforcing
effective control
over exports.
Maintain Profile of the Exporters
Systematic Certification process (Rules of origin, quality etc.)
Introduction of Effective Risk Management techniques for Physical
Inspection
Effective use of Scanner
Increase Enforcement Capacity
Impart Training
Increase Cooperation among the Trading Countries through some
Mutual
Customs Cooperation
Penalize the Exporter for Breaching Rules and Regulation
Creation of International Consensus and Awareness to Ensure Quality
in Export
Reduction in import control and gradual decrease in import tariff and
not tariff
barriers.

Source: EPB
Source: EPB
Regional Market Share (2006-2007)

01. European Union (E-U) 52.26%

02. American Region 32.74%

03. Asian Region 8.52%

04. Middle East Region 2.75%

05. African Region 0.64%

06. Ocenia Region 0.25%

07. East European Region 0.35%

08. Other 2.19%

Shifting of Markets from Asia/Africa to America & EU Markets; and Non-tariff barriers
and Stringent rules of origin are hindering our export.

Trend in Export Trade

 (In product & market)

2006-
1972-73 Growth
2007

No. of Product 25 154 516%

No. of Market 68 184 171%

Total Export 348 12178 3399%

Market share of major export products (2006-2007)

01
Woven Garments 38.25%
.

02
Knitwear 37.39%
.

03
Frozen Food 4.23%
.

04
Jute Goods 2.63%
.

05
Leather 2.18%
.

06
Raw Jute 1.21%
.

07
Chamical Products 1.77%
.

08
Tea 0.06%
.

09
Other 12.28%
.
In Latin America, growth has been better than expected and supported by a strong
global
demand. The external situation improved in many countries. In particular, Brazil and
Argentina have been able to reimburse all their debts to the IMF. In the CIS, while the
region
has benefited from the oil demand, uncertainties on the business environment have led
to
weaker investment while domestic consumption was on the increase. This combination
led to
some capacity constraints that have finally slowed down growth.