In a monumental shift in Bangladesh’s trade relations, China has granted the South Asian nation 100 percent duty-free access to its market, further opening up new avenues for Bangladesh to export goods, including its renowned mangoes. This significant development, which also applies to other least developed countries (LDCs), was conveyed by the Chinese Ambassador to Bangladesh, Yao Wen, during a meeting with Foreign Secretary Jashim Uddin at the Foreign Ministry yesterday.
The move is part of a broader decision announced by China during the Sino-Africa summit earlier this month, where China pledged full tariff exemption for LDCs. Bangladesh, which had previously enjoyed 98 percent duty-free access to Chinese markets since 2022, will now benefit from complete access—marking a new era for the country’s exporters.
Mango Exports: A Juicy Opportunity
Among the most anticipated exports under this new agreement is Bangladesh’s mangoes. “The procedure to export mangoes to China is almost complete,” said Foreign Secretary Jashim Uddin. This could mark a turning point for Bangladeshi mango farmers, as China’s vast market provides unprecedented opportunities. The country is also exploring the export of other fruits like jackfruits and guavas to China, signaling a diversification in Bangladesh’s agricultural export portfolio.
In the fiscal year 2022-23, Bangladesh’s exports to China stood at a modest $676 million, while Chinese exports to Bangladesh were worth more than $18.6 billion. Despite the disparity, the latest duty-free access is expected to tilt the scales, especially if Bangladesh can capitalize on the burgeoning demand for tropical fruits in China.
Potential for Growth: Tapping into a $2.4 Trillion Market
The Chinese market holds enormous potential for Bangladesh’s exports. In 2020, China imported $2.4 trillion worth of goods, but Bangladeshi products made up just 0.05 percent of that total. Economists believe that even a slight increase in market share could bring huge gains. According to MA Razzaque, chairman of the Research and Policy Integration for Development, if Bangladesh can capture just one percent of China’s imports, it could bring in $25 billion in export earnings.
However, experts stress the need for Bangladesh to diversify its export basket beyond the garment industry. Currently, the majority of Bangladesh’s exports to China are dominated by the ready-made garment sector. Expanding into sectors like agriculture, leather, and electronics could be key to maximizing the benefits of this duty-free arrangement.
Strengthening Diplomatic and Trade Ties
The announcement comes at a pivotal moment, as Bangladesh and China prepare to celebrate 50 years of diplomatic relations next year. The two nations have also discussed regional and multilateral cooperation, with Ambassador Yao Wen expressing China’s willingness to assist Bangladesh with flood management, among other areas of collaboration.
China has been a significant source of foreign direct investment (FDI) in Bangladesh, particularly after the formation of the interim government. With bilateral trade relations strengthening and new export opportunities on the horizon, Bangladesh is well-positioned to make the most of its expanded access to the Chinese market.
The Road Ahead: A Bright Future for Bangladesh-China Trade
The duty-free access is expected to boost Bangladesh’s export capacity, reduce its trade deficit with China, and help the nation tap into a lucrative market. As Bangladesh gears up to export mangoes and other goods, this development marks an exciting new chapter in its trade relations with the world’s second-largest economy.
For Bangladesh, this isn’t just about mangoes—it’s about unlocking a world of opportunities.
