Trade Scenario Between Bangladesh and Germany
Trade Agreement between the Government of the People’s Republic of Bangladesh and the Government of the German Democratic Republic was signed on 24 July 1972. The main component of this agreement is “Both Contracting Parties shall, for the purpose of promoting and facilitating trade between the two states, grant most-favored-nation treatment in all matters concerning trade between the two states. Most-favored-nation treatment shall be applied, in particular, in respect of customs duties and other charges, and of the way in which they levied, and to the regulations and formalities governing customs clearance”. Germany is the 2nd Largest Apparel importer of Bangladesh. Bangladesh and Germany are maintaining an excellent bilateral trade relationship.
Germany is the largest trading partner of Bangladesh in Europe and the second largest globally. Bangladesh currently holds the 37th place in the ranking of Germany’s trading partner and its significance has been increasing over a number of years. The “Everything But Arms” policy of the European Union is granting Bangladesh duty-free access to the EU for all products, except arms and ammunition.
Germany Export : Car & Vehicle Parts, Pharmaceuticals, Aircraft,Helicopter & Spacecraft, Refined Petrolium, Petroliam Gas, Medical Instruments, Computers, Trucks, Gas Turbines, Electrical Transformers.
Germany import for Bangladesh : Apparel and clothing accessories, knitted /not knitted, leather; travel goods, handbags Footwear;, Fish , Plastics , Carpets and other textile floor covering, Ship, Ceramic products, Tobacco , Furniture; bedding, mattresses; , Tea, Engineering Products, Bicycle,TV, Jute and Jute goods, Footwear. The trade balance between Bangladesh and Germany is shown below :
Export and Import Statistics (Value in milliom US$)
Fiscal Year |
Export |
Import |
Balance |
2008-2009 |
2269.75 |
410.33 |
(+) 1859.42 |
2009-2010 |
2187.34 |
469.54 |
(+) 1717.8 |
2010-2011 |
3438.7 |
691.3 |
(+) 2747.4 |
2011-2012 |
3688.98 |
537.8 |
(+) 3151.18 |
2012-2013 |
3962.6 |
533.4 |
(+) 3429.2 |
2013-2014 |
4720.49 |
593.6 |
(+) 4126.89 |
2014-2015 |
4705.36 |
589.1 |
(+) 4116.26 |
2015-2016 |
4988.08 |
798 |
(+) 4190.08 |
2016-2017 |
5475.73 |
827.2 |
(+) 4648.53 |
2017-2018 |
5890.72 |
988.1 |
(+) 4902.62 |
2018-2019 |
6173.16 |
1096 |
(+) 5077.16 |
2019-2020 |
5099.19 |
860.1 |
(+) 4239.09 |
2020-2021 |
5953.51 |
795.90 |
(+) 5157.61 |
2021-2022 |
7590.97 |
962.80 |
(+) 6628.17 |
2022-2023 |
7079.77 |
|
|
In last 10 years Bangladesh’s export to Germany increased by 2.06 times from $3688.98 (FY 2011-12) million to $7590.97 (FY 2021-22) million .
The export potential of Bangladesh’s current export commodities to Germany (top ten items)
Hs Code |
Export Potential (Million USD) |
Actual Exports from Bangladesh (Million USD) |
Untapped Potential (Million USD) |
Applied tariff by Germany(%) |
Germany's Import from World (Million USD) |
Bangladesh's Export to the World (Million USD) |
---|---|---|---|---|---|---|
620342 |
1500.0 |
863.2 |
668.5 |
0.0 |
3100.0 |
5500.0 |
610910 |
1400.0 |
1000.0 |
379.9 |
0.0 |
2900.0 |
5600.0 |
611020 |
728.7 |
488.9 |
239.8 |
0.0 |
2200.0 |
2700.0 |
620462 |
701.7 |
367.8 |
333.9 |
0.0 |
1900.0 |
3400.0 |
611030 |
668.3 |
429.0 |
239.3 |
0.0 |
2200.0 |
2300.0 |
620520 |
440.1 |
224.6 |
215.5 |
0.0 |
903.0 |
1800.0 |
610462 |
376.9 |
266.7 |
110.3 |
0.0 |
778.4 |
1200.0 |
610510 |
254.1 |
174.5 |
79.6 |
0.0 |
523.0 |
938.3 |
610990 |
218.7 |
142.5 |
76.2 |
0.0 |
1500.0 |
780.7 |
620343 |
192.2 |
114.7 |
77.4 |
0.0 |
723.5 |
676.3 |
Source: Authors’ compilation from ITC Export Potential Map
Top 20 Exported Item in Germany for the year 2020-2021:
Sl |
HS Code and Product Name |
Amount In USD |
1 |
61091000: T-Shirts, Singlets And Other Vests, Of Cotton, Knitted Or Crocheted |
1,060,109,562.86 |
2 |
62034300: Men'S Or Boys' Bib & Brace Trousers, Breeches & Shorts Of Synthetic Fibres |
557,264,901.32 |
3 |
62034200: Men'S Or Boys' Bib & Brace Trousers, Breeches, Shorts, Of Cotton |
537,938,914.57 |
4 |
61102000: JERSEYS, PULLOVERS, CARDIGANS, WAISTCOATS & SIMILAR ART., KNITTED OR CROCHETED OF COT |
401,006,796.26 |
5 |
61103000: JERSEYS,PULLOVERS,CARDIGANS,WAISTCOATS.., KNITTED OR CROCHETED OF MAN-MADE FIBRE |
338,134,511.69 |
6 |
61046200: Women'S Or Girls' Trousers, Etc, Of Cotton, Knitted Or Crocheted |
306,892,437.51 |
7 |
62046200: Women'S Or Girls' Trousers, Breeches, Etc, Of Cotton |
271,397,713.26 |
8 |
62029300: Woman'S Or Girls' Anoraks, Wind Jackets/Cheaters, Etc, Of Man-Made Fibres |
245,512,219.01 |
9 |
62052000: Men'S Or Boys' Shirts Of Cotton |
140,292,645.49 |
10 |
62019300: Men'S Or Boys' Anoraks, Wind Jackets/Cheaters, Etc, Of Man-Made Fibres |
133,762,800.73 |
11 |
61051000: Men'S Or Boys' Shirts Of Cotton, Knitted Or Crocheted |
119,156,691.54 |
12 |
61023000: Woman'S Or Girls' Over/Car Coats,Etc,Of Man-Made Fibres,Knitted/Crocheted |
99,786,349.12 |
13 |
61044200: Dresses Of Cotton, Knitted Or Crocheted |
90,764,831.46 |
14 |
61112000: Babies' Garments, Etc, Of Cotton, Knitted Or Crocheted |
86,797,046.94 |
15 |
62105000: Women'S Or Girls' Garments Made Up Of Fabrics Of 59.03, 59.06 Or 59.07 |
78,024,080.73 |
16 |
61099000: T-Shirts, Singlets, Etc, Of Other Textiles, Nes, Knitted Or Crocheted |
71,229,400.64 |
17 |
62064000: Women'S Or Girl'S Blouses, Shirts/Blouses Of Man-Made Fibres |
69,594,959.05 |
18 |
61071100: Men'S Or Boys' Underpants And Briefs Of Cotton, Knitted Or Crocheted |
65,198,659.35 |
19 |
62121000: Brassisres |
59,652,381.11 |
20 |
61082100: Women'S Or Girls' Briefs And Panties Of Cotton, Knitted Or Crocheted |
53,091,802.32 |
Total Export Amount: 5,953,507,564.83 USD