EDEN IAS

NEWS IMPULSE – BANGLADESH SIGNS FIRST PREFERENTIAL TRADE AGREEMENT (PTA) SINCE ITS INDEPENDENCE | 07 DECEMBER

Syllabus section: International Relations/ Current events of International Importance

 

Why in news?

Bangladesh signed its first Preferential Trade Agreement (PTA) with Bhutan allowing duty free access to a range of goods between the two countries. This is the first PTA Bangladesh has signed with any country in the world.

Highlights

• The agreement was signed between Bangladesh Commerce Minister and Bhutan’s Economic Affairs Minister in Dhaka. The agreement was signed on the occasion marking the 50 years of diplomatic ties between the two countries.

• Under the PTA 100 Bangladeshi products will get duty free access to Bhutan. At the same time, 34 items from Bhutan will get duty free access into Bangladesh. Further items can be added in the list later on the basis of discussion between the two countries.

• Goods like Jute and Jute products, baby clothes and accessories, men’s trousers, jackets and blazers are among the 100 items from Bangladesh which will get duty free access to Bhutan.

• On the other hand fruit juice, natural honey, wheat flour jams, jellies and lime stone, quartzite etc from Bhutan will have duty free access to Bangladesh.

• The trade volume between the two countries is approximately 50 million dollars with 7.56 million of export and 42.09 million import into Bangladesh.

• Bangladesh is expected to sign 11 more PTAs and Free Trade Agreements (FTAs) with countries like Indonesia and Nepal by June next year.

• In 1971, Bhutan was the first country in the world, followed by India as the second, to recognize Bangladesh as an independent country.

 

Source: News on All India Radio

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