Business

Cambodia And Bangladesh All Set For Bilateral Trade Deal To Complement Their Garment Exports

A Cambodian commerce ministry official recently disclosed that Bangladesh is all set to enter into a trade agreement with Cambodia. The draft proposal to form a joint trade commission with Cambodia is expected to be signed this year, she elaborated.

According to Cambodia’s ministry of commerce spokesperson, Soeng Sophary, “Bangladesh is on the verge of laying down terms and conditions for the setting up of a trade commission. This will in course of time, give rise to a bilateral trade agreement. This in turn will reduce tariffs on potential imports.” In principle, we have concluded an agreement with a commission framework. The official approval from Bangladesh is however awaited,” she added.

The ministry spokesperson however, declined to comment on which items will be imported and exported tariff free to Bangladesh, stating, this will be disclosed once the agreement is officially signed. Significantly, both Bangladesh and Cambodia rely on the garment industry to boost their economic growth. “We are basically examining ways in which our bilateral trade can complement one another’s growth,” she explained.

Till recent times, the trade between the two countries had stayed minimal and touched a mere US $ 6.7 million mark on an annual basis. This was disclosed in the official data that was released by the Bangladesh ambassador Saida Muna Tasneem in the previous month.

Bangladesh mainly exports garments, footwear and leather goods to Cambodia. Cambodia in turn exports cotton, cooking oil and fertilizer to Bangladesh.

According to Garment Manufacturer’s Association of Cambodia President, Van Sou Ieng,”Despite the fact that the two countries are competing for the same global market, a bilateral trade deal will definitely give a push to garment production in both countries. In the event Cambodia receives tariff free leather, this could lead to a significant boost in its production in the travel goods sector.” Cambodia’s travel goods sector had received duty-free access to the US in previous July.

Leng also stressed that both the countries should endeavor to create a labor sharing agreement as this would facilitate Bangladeshi workers to migrate to Cambodia and fill the skill gap in the garment sector leading to increased production of value-added goods.

He was also of the opinion that this could lead to future growth in Cambodia’s manufacturing capabilities.