The country’s businesses and relevant ministries have suggested a review of the terms of reference of the proposed free trade area (FTA) agreement with Turkey in such a way that it protects domestic industries, officials have said. They said interests of local industries have to be upheld first while opening the country’s market in the name of FTA which is aimed at expansion and strengthening of trade ties between the two countries, they added. The government has agreed to sign the maiden FTA deal with Turkey as imposition of 17 per cent additional duty on apparel item of Dhaka by Ankara is seriously hampering its export. Apparel products account for over 75 per cent of Bangladesh’s total export to Turkey. The signing of the pact may lead to abolition of duty on Bangladesh’s export there, officials said. Sources said the ministry of commerce (MoC) this week convened an inter-ministerial meeting to discuss about the draft of the terms of reference of the proposed agreement. In the draft, the Turkish side proposed that both the parties will open 50 per cent tariff lines of agricultural products and 100 per cent tariff lines of industrial products under the agreement. Once opened, these products of both the countries will be able to enter each other’s market without paying any duty. At this point, the Bangladesh Tariff Commission opined that 50 per cent of agricultural tariff lines can be opened but in case of industrial products, it suggested opening of 80 per cent tariff lines. However, a representative of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) opposed the suggestion and proposed for opening 50 per cent tariff lines in case of industrial products and 80 per cent tariff lines in agriculture products. He said Bangladesh should remove tariff in case of FTA with Turkey in line with what it did under the South Asian Free Trade Area (SAFTA) agreement. At the meeting, a representative of the Ministry of Industries (MoI) said that opening of the market in the name of FTA might seriously impact the country’s domestic industry. He said protection of local industries has to be maintained while the officials sit for negotiations with their Turkish counterparts. Turkey has proposed for a comprehensive and high-level FTA consistent with relevant provisions of the World Trade Organisation (WTO) agreement, in particular, Article XXIV of General Agreement on Tariffs and Trade (GATT). It also proposed that no non-tariff and para-tariff barriers should remain for products of both the countries while entering each other’s market. The Turkish side wants signing of a full-fledged FTA both for goods, services, and investment. It also wants both the countries to follow environmental requirements and relevant rules of the International Labour Organisation to ensure labour rights in the factories. When contacted, additional secretary of the MoC Monoj Kumar Roy told the FE Tuesday Bangladesh wants to move forward for future deals taking into consideration its graduation to developing country status soon. “We are taking necessary preparations so that such bilateral FTAs can help when we lose zero tariff facilities as a least developed country after graduating to the next stage,” he said. Another senior MoC official said there are various para-tariff barriers (PTBs) in Bangladesh’s import tariff schedule. But removing PTBs for the FTA would not be possible for Bangladesh, he added. “We will first sign a framework agreement and start the FTA with goods. The service sector and investment front will be dealt with later,” he said. In fiscal year 2013-14, Bangladesh exported goods worth US$856 million to Turkey and imported goods valued at $183 million. Bangladesh’s major exports to Turkey include apparel and clothing accessories, textile yarn and related products, non-metallic mineral products, tobacco and tobacco manufactures, and leather and leather goods.
