FBCCI urges Brazil to resolve pending anti-dumping measures, duty-free access

Infographics: TBS

Bangladesh's businesses have urged Brazil to resolve pending anti-dumping measures it imposed on sacks, jute bags, and jute yarn and to ensure duty-free market access for readymade garments (RMG) products to bridge the trade gap between the countries.

Prime Minister Sheikh Hasina has also called upon Brazil to import RMG directly from Bangladesh.

"Despite the potential, our current trade volume does not reflect the true capacity of our economies. Our pharmaceutical products encounter certain restrictions over the registration process in the Brazilian market. I kindly request relaxing these constraints," Mahbubul Alam, president of the Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) said at a meeting.

The apex trade body and the Brazil Bangladesh Chamber of Commerce and Industry (BBCCI) organised the meeting "Facilitating Trade between Bangladesh and Brazil" at Intercontinental Dhaka hotel on Monday (8 April).

To foster trade, the FBCCI president focused on simplifying customs procedures, strong logistic networks, and establishing new direct shipping routes that can significantly reduce costs and time for traders and investors alike.

The prime minister said, "RMG goods from Bangladesh have been exported to Brazil on a limited scale through a third party. It will be more affordable for Brazil if the country directly imports RMG items from Bangladesh."

She made the remarks while a high-level delegation of Brazil led by its Foreign Minister Mauro Vieira called on her at her office today.

"Bangladesh imports sugar, soybean oil and cotton from Brazil while Bangladesh only exports a small amount of RMG products to Brazil. The balance of trade highly favours Brazil," she was quoted as telling the delegation, reports UNB.

"RMG goods from Bangladesh have been exported to Brazil on a limited scale through a third party. It will be more affordable for Brazil if the country directly imports RMG items from Bangladesh."

Sheikh Hasina, Prime Minister

As the guest of honour at the meeting jointly organised by the FBCCI and the Brazil Bangladesh Chamber of Commerce and Industry, the Brazil foreign minister said that his country wants to be a partner of Bangladesh to ensure food and nutrition security.  

Brazil is eager to export meat, wheat, agricultural products and other products, he said, adding that his country is looking forward to strengthening trade ties with Bangladesh.

Bangladesh's exports to Brazil in fiscal year 2022-23 were $ 0.17 billion and the imports from Brazil were $2.59 billion, according to the Export Promotion Bureau.  

Export products to Brazil are primarily knitwear, woven garments, jute and jute goods, footwear and pharmaceutical products.  
Currently, a 25% tariff is imposed on RMG exports to Brazil from Bangladesh.

However, the key imports from Brazil are prepared foodstuffs, textiles and textile articles, animal or vegetable fat, iron and steel products, chemical products, machinery and mechanical appliances, etc.

The business delegation of both countries presented at the event said Bangladesh's RMG industry can immensely benefit from Brazil's high-quality cotton.

Conversely, the world's largest healthcare cooperative is also located in Brazil and Bangladesh's strength in the pharmaceuticals with IP exemption can offer Brazil affordable medicines and healthcare solutions, they pointed out.

Some of the sectors including the pharmaceutical industry, healthcare, jute and jute goods, ready-made garments, food, and agricultural products hold immense trade potential for both countries, as per the deliberations of speakers from both sides.

The Brazilian delegation especially raised their potential to export halal poultry meat, beef, sugarcane and soybean to the Bangladesh market.

The businessmen mentioned that it would be mutually beneficial for the two countries to consider signing a preferential trade agreement (PTA) or free trade agreement (FTA).

Ahasanul Islam Titu, state minister for commerce; Paulo Fernando Dias Feres, ambassador of Brazil in Bangladesh; Shahriar Ahmed, president of the Brazil-Bangladesh Chamber of Commerce and Industry, also spoke at the event.

Brazil thankful for Bangladesh's substantive contribution to G20 discussions

The Brazilian foreign minister said global challenges are interconnected and can only be addressed through reinvigorated multilateralism, reforms and international cooperation.

"In that spirit, Brazil's G20 Presidency believes that the group should work towards a United Nations that is more effective in its purposes while tackling main inequalities in its decision-making processes," he said while delivering a lecture at the Foreign Service Academy on priorities for the Brazilian presidency.

"We are thankful for the substantive contribution that Bangladesh has been providing to G20 discussions," he said.
Foreign Secretary Masud Bin Momen, among others, spoke at the programme.

In 52 years of diplomatic relations between the two countries, this is the first time that a Brazilian Foreign Minister is visiting Bangladesh.