Trade Scenario Between Bangladesh and Germany

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Trade Scenario Between Bangladesh and Germany

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)	Germany's Import from World (Million USD)	Bangladesh's Export to the World (Million USD)
620342	1500.0	863.2	668.5	3100.0	5500.0
610910	1400.0	1000.0	379.9	2900.0	5600.0
611020	728.7	488.9	239.8	2200.0	2700.0
620462	701.7	367.8	333.9	1900.0	3400.0
611030	668.3	429.0	239.3	2200.0	2300.0
620520	440.1	224.6	215.5	903.0	1800.0
610462	376.9	266.7	110.3	778.4	1200.0
610510	254.1	174.5	79.6	523.0	938.3
610990	218.7	142.5	76.2	1500.0	780.7
620343	192.2	114.7	77.4	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